When it comes to buying or leasing medical equipment, both routes have their pros and cons. However, leasing is becoming an increasingly popular choice for many healthcare providers. The best medical equipment leasing companies provide benefits like maintenance and flexibility, allowing healthcare practitioners to focus on patient care.
Why Leasing Medical Equipment is Growing in Popularity
Cost-effectiveness is one of the benefits of leasing medical equipment, making it a popular option for healthcare establishments. When a hospital, emergency room, medical training facility or other healthcare facility chooses to lease rather than purchase its equipment, the initial cost drops dramatically.
There are two main types of leasing agreements — capital and operating. Both offer manageable monthly repayment schedules that fluctuate depending on the lease period.
1. Capital Leases
Capital leases typically operate on a rent-to-buy principle, where the healthcare facility owns the equipment after the lease period expires. Sometimes you pay a settlement balance to complete the purchase. The settlement amount will likely be nominal. Accountants will treat your capital lease as the purchase of an asset from the agreement’s inception. The monthly payments for a capital lease are usually higher than those of operating leases, given that the lessee will own rather than rent the equipment by the end of the agreement.
2. Operating Leases
Operating leases usually require lower monthly payments. The lessee has to settle a market value amount following the lease period if they decide to buy the equipment. The lessor calculates the settlement amount at a fair market price beforehand, which is why operating leases are also called “fair market leases.”
Further Benefits of Leasing Medical Equipment
Lower initial costs and manageable monthly payments play a huge part in the popularity of leasing medical equipment. Several other benefits make it a great choice for healthcare facilities.
- Upgraded equipment: By leasing, you can upgrade your existing equipment to keep up with updated technologies. Without committing to a purchase or high cost, you can equip your institution with modern, technologically advanced equipment.
- Reduced taxes: You can subtract your lease payments from your business income to decrease your tax liability and save on your leasing cost.
- Improved client care: Leasing instead of purchasing means you won’t need to recoup as much in overheads. You can use up-to-date equipment while offering your patients reasonable prices. Using the best available equipment can also attract new clientele.
- Enhanced flexibility: After your lease period, you can choose to renew the lease, buy the equipment or return it. Leasing is often a more flexible option compared to taking out a loan, which depends on your credit score.
- Easier maintenance: With most lease agreements, the lessor covers equipment maintenance and repairs. If you buy rather than lease new equipment, all repair and maintenance costs are your responsibility.
Where to Lease Medical Equipment in the United States
The following companies are among the top places to lease medical equipment.
1. Med One Group
An elite national medical leasing company, Med One Group operates from Sandy, Utah. Since forming in 1991 as Med One Capital, the medical equipment provider has opened offices in seven states, leasing equipment to hospitals and various other care facilities.
Key Benefits
- Capital and operating lease options
- Customized leasing agreements
- Short-term lease benefits with Med One Advantage
- Easy five-step leasing application
2. Stryker
In 2019, Stryker celebrated 40 years as a publicly traded company. With offices in six continents, the company is a premier international medical and surgical equipment provider. Stryker’s leasing solutions are part of its Flex Financial program.
Key Benefits
- Capital and operating lease options
- Deferred payment programs
- Customizable financial programs
- Strategic financial consulting services
3. Meridian Leasing
Since 1979, Meridian Leasing has assisted customers in acquiring equipment. This Illinois-based company leases many types of equipment — including medical equipment — and offers sale and lease options to hospitals and other healthcare institutions through its TrueFlex Financial Solutions subsidiary.
Key Benefits
- Sell-and-lease-back option
- TrueFlex Portal equipment monitoring
- Short-term equipment rentals
- Customizable terms and payment schedules
Medical Equipment Leasing Provides Opportunity
With limited capital at your disposal, buying expensive medical equipment can be difficult. Leasing is more affordable, giving healthcare institutions the opportunity to acquire technologically advanced equipment at a lower cost. Finding and leasing from the right medical equipment provider can give your company the industry boost it needs