Facts About Renting Medical Equipment

By Lila Bryant


The practice of medical service requires investment in some of the most sophisticated and rather expensive machines. The individuals and organizations that specialize in this field need the latest tools if they are to realize the best impact, particularly on their patients. Nevertheless, obtaining medical implements is a rather daunting task due to the high costs involved. Also, the tools are often rendered obsolete sooner than expected. It is because of this that many health facilities have resorted to renting medical equipment.

It is possible to finance your medical facility 100 percent by renting tools. Some of the medical implements offered for rental include; X-ray and ultrasound machines, surgery items, MRI machines, computers, imaging diagnostic tools and EMR software. There are however some considerations to be made before settling on the rental decision.

Be sure to begin with evaluations of a rent vs. Buy decision. Analyze the two alternatives in order to reach the most beneficial and efficient decision. Compare the price of buying the item against various lease quotes available, while considering different manufacturers, dealers and leasing companies.

But to enhance an inclusive financial analysis, be sure to collect all your pertinent financial data at your disposal. It is this information that will enable you to analyze and evaluate the feasibility of a particular investment. Determine the incremental cash flows (additional revenues and expenses) resulting from the investment. Incremental analysis will illustrate how a particular investment is going to improve the overall business performance, as opposed to simply analyzing whether or not a single portfolio will generate profit on its own or not.

The comparison should however not stop here. Further analyze the data with a break even analysis, a net present value analysis and a payback value analysis. With these analyses, you are furnished with both the short and long term financial implications of the particular investment. It also denotes the duration of time it will take to recoup the initial investment.

However, the cost of renting depends to a great extent on the rate of the lease and the periodic payments. As such, carry out and evaluation of the factors affecting the periodic payments and the lease rate. For example, the period of the lease has a profound impact on the terms and the amount of charges associated. Clearly spell out the duration of your lease.

The frequency of repair of the concerned item must also be considered, together with the kind of lease to be adopted. The service schedule (the frequency and convenience of repair) of the tool ought to be put in mind. A good deal should entail fewer repairs, with the service being undertaken on-site. Leases can also be classified as capital and operating. Capital leases have capital allowances, with residual ownership of the equipment while, operating leases are purely rental agreements. As such, capital leases are relatively expensive.

The decision to buy or rent a medical appliance depends on determining which of the two choices is more beneficial especially for your practice. The best investment is one that fits well with your overall business plan and is quite promising compared to other investment opportunities, both on the short run and the long run.




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