Investing in expensive medical equipment is one of the major decisions hospital administrators have to make. The decision can affect the cash flow of your business. Hospitals can either purchase the equipment or lease it. The decision depends on various factors, and these are discussed below.
Leasing the equipment
When thinking of leasing equipment, you must find out the length of the lease period; whether the lease period can cover the life of the equipment; and how much it would cost you if you decided to buy the equipment after the lease period is over.
These are appropriate when the technology is expensive, and there is a chance that it may change often. For example, imaging and lab equipment have short life spans in terms of technology. In this type of leases, you don’t have to buy the equipment at the end of the lease period.
This is a suitable option for equipments having a longer lifespan. So, you don’t have to purchase the equipment right away. So, you don’t need to pay any amount upfront. At the end of the leasing period, you must pay a fixed amount to buy the equipment.
There are equipments that you don’t need to use very frequently. You can rent them on a daily basis. If you need the equipment for five days a week, then this option won’t be appropriate.
Choose these leasing options carefully depending on your need, type of equipment and budget. Don’t take the decision hastily as it might significantly affect your business.
Buying the equipment
Whether to buy equipment or not depends on the frequency of its use. Once you decide to buy, you must check the interest rates. You must then decide how long it might take for new technology to replace the existing one.
Before making the decision of whether to lease or buy expensive medical equipment, the owner of the clinic or hospital must discuss the issue with a financial officer.