Rent Versus Buying Medical Equipment
Rent versus buying medical equipment is a business decision that varies according to each practice’s unique needs and goals. Practices will rent medical equipment as a test of actual usage before venturing into a particular service line.
Common reasons why medical practices rent equipment:
- Provide uninterrupted operations while equipment is repaired/recalibrated.
- You have access to the most advanced technology to enhance patient satisfaction and produce positive outcomes.
- Patients do not have to travel elsewhere to obtain specialized testing/care.
- The equipment becomes obsolete before contract is fully paid.
As you make this decision, you should consider the following:
- Does the equipment need repaired/replaced frequently?
Renting may be a viable option for equipment if it constantly has to be replaced/repaired.
- How quickly will the technology evolve?
Renting may be the best option for equipment that evolves rapidly. Practices then do not over-invest in technology that could quickly become obsolete.
- What types of costs are associated with maintaining the equipment?
Ongoing costs are a barrier for some practices and in a rental arrangement, the vendor may absorb many of these costs.
- What are your goals?
Renting is a less risky approach if you want to measure demand for a particular service.
- Do you want flexibility?
Renting offers the maximum flexibility to be able to make changes.
- What is your financial picture?
Can you afford to absorb a significant up-front cost? Can you attain a line of credit? What expenses will you incur in the near future or would your operating capital be better used for a different purpose?