Medical Equipment Leasing & Financing
Purchasing Medical Equipment
Purchasing medical equipment is a time-consuming process that requires diligent and careful research. If you need new devices, consider if leasing medical equipment may be more cost-efficient for you. Depending on your lease/purchase, it can be easier, for example, to finance MRI equipment when leasing rather than purchasing.
Regardless of your decision to purchase or lease, the first step is to evaluate your requirements and begin researching manufacturers & models. Since generally medical devices are used for one purpose, you probably have an idea of the type of equipment you’d like to acquire therefore most of your research will be around the manufacturer and model of said device. Remember to also consider the age of the model when evaluating devices.
The next step after that entails evaluating your financing options as well as considering if leasing is a better option for you and your business.
How Cost-Effective is Purchasing New Medical Equipment?
To buy or not to buy? That is the ultimate question – at least for this topic. There are a variety of things to consider when making this decision. Including the needs of the business, needs of clients, profit margins, etc. Assuming your goal is to provide a better, upgraded, or newer experience for your clients while still generating a profit, you luckily have two options: purchase or lease. Both offer your clients what they need, one difference is one offers you more leeway in your spending budget.
One of the most vital questions to answer when investing in new equipment is deciding how much revenue it will generate for your company. That will help you decide whether purchasing a new or even used device (check out our article Tips for Purchasing Used Medical Equipment for more information) is cost-effective. Examine your reasoning for this purchase: Is this something your clients have been asking for? If you work directly with patients, take some time to evaluate their demographics and if this purchase would benefit them.
It’s also important to consider the overall experience your clients have at your facility. For example, if you decide to finance medical equipment that is just barely making a profit or breaking even but it’s bringing in clients that are getting other types of testing done as well – then it may be worth it. Sometimes the revenue may not come directly from the medical device but as a result of the device.
Pros & Cons of Purchasing New Medical Equipment
The benefits of new equipment are not to be understated however neither are the cons. That is why it is so important to analyze deeply whether this is the right move for you and your team at this moment in time. Some additional pressing questions to consider include:
- Is this an unserved need for my clients?
- How much additional training will my team need on this new machine? (this applies to leasing a machine as well)
- Does my current equipment meet my demands?
- Will this generate enough revenue for my business?
- Do I have the spending budget for this equipment?
Although your facility can gain new clients and provide a better service for existing ones, it can create financial strain on the company. Especially for large purchases like MRI machines that are more expensive than their counterparts. In this case, it may make more sense to lease MRI equipment instead of committing a large sum of money upfront.
Medical Equipment as a Marketing Tool
A topic we touched on briefly is using new medical equipment as a way to get more clients in the door even if it doesn’t necessarily generate revenue directly from said device. This requires strict calculations to confirm that the medical device is more of an asset than a liability. However, if done right – it can generate a lot of revenue for your business. An added benefit of using medical equipment as a part of your company’s marketing efforts is long term clients can see you grow and change. Since there are always new discoveries and technologies coming out in the medical industry, it represents the company’s mission to always provide the best care for their clients.
The willingness to upgrade your equipment will aid you in retaining clients as well as attract new clients and referrals. One option is to lease equipment instead of purchasing so that you can continuously upgrade your devices to reflect changes in the industry without the financial burden. For example, if your clients mainly come to you for MRI screenings but some may also benefit from CT scans, your company can lease CT equipment to showcase its ability to conduct scans if necessary.
Another added benefit of upgrading your equipment periodically is the ability to engage your clients more often. Your company will be able to send them pamphlets, brochures, and postcards by mail or in a monthly educational newsletter that would add value to their medical health. Providing knowledge of the equipment that they may use in the future or some they’ve already used can help them understand the importance of such evaluations. Plus they’ll tend to have a more positive view of your business because you’re providing them with such information.
Types of Leasing & Financing Solutions
After you’ve chosen to purchase medical equipment, your next step would be to examine your financing options. At DirectMed Parts & Services we offer terms to help you take that next step. We understand that this purchase is an investment to better your business and support your intention to offer new/improved services for your clients. That is why we offer terms to help you manage this investment.
Our process is simple, efficient and quick. It involves vetting your company through three different references. You supply us with your references that can confirm your payment history and after that, your company has 30 days to complete the purchase. We’ve found that this helps when for example financing CT equipment since it is a large purchase. We accept several options for purchasing such as wire, check, and credit cards. Reach out to us at any time and we’ll connect you with the right representative to walk you through the process.