Factors To Consider When Renting Medical Equipment

By Lila Bryant


The practice of medical service requires investment in some of the most sophisticated and rather expensive machines. The individuals and organizations that specialize in this field need the latest tools if they are to realize the best impact, particularly on their patients. Nevertheless, obtaining medical implements is a rather daunting task due to the high costs involved. Also, the tools are often rendered obsolete sooner than expected. It is because of this that many health facilities have resorted to renting medical equipment.

It is possible to finance your medical facility 100 percent by renting tools. Some of the medical implements offered for rental include; X-ray and ultrasound machines, surgery items, MRI machines, computers, imaging diagnostic tools and EMR software. There are however some considerations to be made before settling on the rental decision.

To begin with, it is important to first of all carry out a lease vs. Buy analysis. The analysis enables you to be sure that you are engaging in the best financial decision. The process entails comparing the item prices across different major manufacturers, against lease quotes obtained from numerous medical tools leasing companies.

In order to undertake a complete financial analysis, ensure to gather all your pertinent financial information into one place. The data is then used to analyze the viability and feasibility of a particular investment. Gathering the data is particularly important as it enables you to identify and estimate the incremental cash flows associated with the investment. Incremental cash flows simply mean the additional expenses and revenues as a result of the investment. This indicates how a single investment will improve the overall performance of your business, as opposed to a mere analysis of whether a particular investment is profitable on its own.

The comparison should however not stop here. Further analyze the data with a break even analysis, a net present value analysis and a payback value analysis. With these analyses, you are furnished with both the short and long term financial implications of the particular investment. It also denotes the duration of time it will take to recoup the initial investment.

However, it is worth considering that the cost of renting is, to a better extent, determined by the rate of the lease. It is therefore necessary to put in mind the factors influencing medical equipment lease rates. One such vital factor is the period of the lease. Before making the decision to rent, ascertain the period you are going to rent the equipment and evaluate the financial implications.

Before renting, one should also consider the frequency of service (repair) and the type of the lease (capital or operating lease). For maintenance, consider the service schedule; the number of times and how convenient it is. Does it allow on-site servicing or must it be taken in for repair? Capital leases (with capital allowances and residual ownership) are more expensive compared to operating leases (are pure rental agreements).

All in all, the resultant decision should be a win-win situation. The project so undertaken must be beneficial not only to your practice, but also to the ultimate client. The customer should reap from the comfort and affordability associated with the decision. For the business, it ought to be in line with the future plans and compare well with other alternative foregone opportunities in the practice.




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