Guest Post, Mark E. Hoffman
Although recent advancements in medical technology are making it easier than ever before for healthcare providers to increase throughput and deliver better patient care, many are taking a “wait and see” approach to new equipment. While medication with the help of different Specialty Pharmaceutical Distributor is slowly improving through the years, for many U.S. healthcare providers, updating equipment is taking a backseat to what seems like more immediate concerns such as healthcare reform, EHR incentive deadlines and reduced reimbursements.
What many providers may not realize is that equipment leasing makes it easy for healthcare providers of all types to obtain the equipment they need to provide better patient care, comply with federal regulations, and remain competitive, all while conserving cash. This is the same for all countries who have healthcare facilities or provide home care and require healthcare equipment for service users. If a healthcare provider is interested in healthcare equipment they might be interested in checking out somewhere like, bosshardmedical.com.au or a more local establishment. There are places that allow medical personnel to buy equipment needed for their practices or hospitals items like a bambach saddle seat can be found online or from businesses that deals with healthcare equipment.
The Benefits Add Up
Some of the most common benefits of leasing healthcare equipment include:
- Tax treatment – The IRS does not consider certain leases to be a purchase, but rather a tax-deductible expense. Therefore, healthcare providers can deduct the lease payments from income, thus reducing the net cost of the lease.
- 100 percent financing – Since a lease often does not require a down payment, it can be equivalent to 100 percent financing. Healthcare providers can conserve the capital that would have been used for a down payment and reinvest it in the business.
- Flexibility – As healthcare facilities grow and needs change, the lessee may be able to add or upgrade technology at any point during the lease term.
- Asset management – A lease provides the use of the technology solution for specific periods of time at fixed payments. The leasing company assumes and manages the risk of technology ownership. At the end of the lease, if the healthcare provider elects to return the technology, the leasing company is responsible for the disposition of the asset.
- Upgraded technology – Technology solutions that could depreciate quickly should be leased to limit a healthcare facility’s risk of getting caught with obsolete equipment. Plus, leases make it easier to upgrade or add technology solutions to meet ever-changing needs.
- Improved cash forecasting – When healthcare providers lease, they can accurately forecast the cash requirements for equipment since they know the amount and number of lease payments required, and with leases there are no floating fees.
- Flexible end of term options – There are typically three flexible options at the end of a term. The lessee can return the equipment, purchase the equipment from the leasing company or extend the lease for an additional period of time.
- Easier financing than loans – With a lease, healthcare providers can avoid requirements like compensating balances, large down payments, client list reviews and cash-flow projections, making the finance process faster and easier.
For more information about equipment leasing or to find an equipment leasing company in your area, visit the Equipment Leasing & Finance Association at www.elfaonline.org.
Mark Hoffman is senior vice president of Key Equipment Finance’s healthcare division. Key Equipment Finance is one of the largest bank-held equipment finance companies in the United States. He can be reached at (248) 840-2031 or mark.e.hoffman[at]key.com. For more information, visit www.KEFonline.com.