Medical Equipment Leasing May Be Answer to Starting a Practice
Not long after graduating from dental school, an erstwhile student decides to strike out and establish a practice. There's just one problem: she doesn't even have a dental chair for patients.
Nearly all medical professionals face this dilemma at one time or another and medical equipment leasing may be the answer. There are two main avenues for medical professionals to follow in acquiring equipment: medical equipment financing or medical equipment leasing.
Financing it the traditional way, the practitioner negotiates a loan to purchase the equipment and makes payments over the life of the loan. Medical equipment leasing involves a long-term rental agreement with the equipment's owner that allows the lessee to use it by paying a monthly fee.
Medical Equipment Leasing Tips
Regardless of which path you choose, there are some tips worth considering should medical equipment leasing become your chosen option. It's big business on a global scale driven partly by changing technology and the obsolescence rate of the equipment. That's why experts recommend leasing equipment that is likely to have a short shelf life, or will experience excessive wear-and-tear. These risks are taken on by the owner.
Establish terms with a medical equipment leasing company, including length of the term. Many companies offer a lease-to-own option, but be sure you lock in a contract that is favorable. Avoid a situation in which you might pay a higher monthly fee over the life of the lease only to have the owner escalate the price when it comes time for you to own it. Also check that maintenance responsibility is clearly spelled out. You might be responsible for it.
A general rule about financing vs. medical equipment leasing: Professionals who want to keep their short-term costs low and fixed should opt for medical equipment leasing; if you can pay a larger amount now and want only to pay for the maintenance once the loan is paid off, financing might be a better choice.
Choosing a Leasing Company
When evaluating which medical equipment leasing company is right for you, evaluate them on experience and expertise, reputation, ability to perform and their relationship approach.
In addition to asking professional and personal contacts -- your attorney, accountant, bank contacts and colleagues -- about their leasing experiences, you might check with and number of trade associations when evaluating a company. Those associations include the Equipment Leasing and Financing Association, National Association of Equipment Leasing Brokers and Association for Governmental Leasing and Finance.
Medical professionals can lease just about any medical equipment that's on the market, including those for diagnosis, treatment and rehabilitation.
Diagnostic equipment, for example, includes x-ray machines, MRI machines, CT scanners, and ultrasounds. Treatment machines might include those for radiation therapy provided to cancer patients. Rehabilitation equipment is generally used post-treatment to help a patient regain function and stability.
Depending on the practice, a medical office might keep home health equipment rentals such as walkers or canes in stock for patients to use on a short-term or long-term basis.
Nearly all medical professionals face this dilemma at one time or another and medical equipment leasing may be the answer. There are two main avenues for medical professionals to follow in acquiring equipment: medical equipment financing or medical equipment leasing.
Financing it the traditional way, the practitioner negotiates a loan to purchase the equipment and makes payments over the life of the loan. Medical equipment leasing involves a long-term rental agreement with the equipment's owner that allows the lessee to use it by paying a monthly fee.
Medical Equipment Leasing Tips
Regardless of which path you choose, there are some tips worth considering should medical equipment leasing become your chosen option. It's big business on a global scale driven partly by changing technology and the obsolescence rate of the equipment. That's why experts recommend leasing equipment that is likely to have a short shelf life, or will experience excessive wear-and-tear. These risks are taken on by the owner.
Establish terms with a medical equipment leasing company, including length of the term. Many companies offer a lease-to-own option, but be sure you lock in a contract that is favorable. Avoid a situation in which you might pay a higher monthly fee over the life of the lease only to have the owner escalate the price when it comes time for you to own it. Also check that maintenance responsibility is clearly spelled out. You might be responsible for it.
A general rule about financing vs. medical equipment leasing: Professionals who want to keep their short-term costs low and fixed should opt for medical equipment leasing; if you can pay a larger amount now and want only to pay for the maintenance once the loan is paid off, financing might be a better choice.
Choosing a Leasing Company
When evaluating which medical equipment leasing company is right for you, evaluate them on experience and expertise, reputation, ability to perform and their relationship approach.
In addition to asking professional and personal contacts -- your attorney, accountant, bank contacts and colleagues -- about their leasing experiences, you might check with and number of trade associations when evaluating a company. Those associations include the Equipment Leasing and Financing Association, National Association of Equipment Leasing Brokers and Association for Governmental Leasing and Finance.
Medical professionals can lease just about any medical equipment that's on the market, including those for diagnosis, treatment and rehabilitation.
Diagnostic equipment, for example, includes x-ray machines, MRI machines, CT scanners, and ultrasounds. Treatment machines might include those for radiation therapy provided to cancer patients. Rehabilitation equipment is generally used post-treatment to help a patient regain function and stability.
Depending on the practice, a medical office might keep home health equipment rentals such as walkers or canes in stock for patients to use on a short-term or long-term basis.
