Medical equipment is used daily in the healthcare industry. Medical professionals rely on this equipment when diagnosing and treating patients and may question whether they should lease or purchase it. Each option has benefits and drawbacks that must be considered.
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Leasing Benefits
Leasing medical equipment through Kemper Medical supplies offers lower upfront costs. The customer puts a small deposit down on the equipment or provides a down payment. They then make monthly payments until the lease term ends. This option allows the healthcare facility to get needed equipment without using all its financial resources. The funds saved by leasing can be used for other purposes.
Furthermore, the company can upgrade equipment more often to ensure it always has access to the latest tools. When the lease term ends, upgrade to the new equipment. As advances are continuously being made in healthcare, this benefit is enormous.
The leasing company maintains the equipment, so leasees won’t have this expense to worry about. Healthcare organizations also receive tax benefits and can choose terms that meet their specific needs when leasing.
Leasing Drawbacks
Leasing often leads to higher costs over the long term, and the company must undergo a credit check. Healthcare organizations cannot customize the equipment because it belongs to the lease provider, and they may get a more significant tax break by purchasing the equipment outright.
Purchasing Equipment
Purchasing equipment outright leads to long-term cost savings. If the company pays for the equipment outright, interest won’t be charged. Furthermore, it can customize the equipment to meet its specific needs. The equipment appears as an asset on the organization’s books and can be used as security if future funding is needed.
Purchasing Equipment Drawbacks
Equipment may become obsolete in a few years, leaving the company with outdated technology. Patients might choose to go elsewhere if they feel they aren’t getting a high level of care. In addition, the cost of purchasing outright can leave an organization short on funds for other purchases, and the organization’s cash flow could be severely interrupted with an outright purchase. Each organization must consider these drawbacks when deciding which path to take.
Financing Equipment
Before leasing equipment, know the different options. Shopping around for a lease ensures the organization gets the best deal and terms and conditions. Carefully review the lease agreement to ensure everything is understood, including the lease duration, renewal options, and other terms and conditions. Do the same if obtaining a loan for the purchase. Never sign any document until all agreement aspects are fully understood to prevent problems.
Look at all costs associated with leasing or purchasing the equipment. Maintenance, monthly fees, and other costs can quickly add up. The organization must know what to expect when budgeting for these expenses and determine whether purchasing or leasing makes more financial sense. When making these calculations, speak with others who lease equipment and purchase outright to ensure no fees are overlooked.
Weigh the pros and cons of each option, considering the organization’s unique circumstances and needs. What works for one organization won’t be appropriate for another. Overall, companies that need the latest technology to provide the highest level of patient care should consider leasing to make upgrading easy. Organizations that can use tried-and-true devices typically benefit from purchasing. However, these aren’t hard and fast rules, and purchasing teams must recognize that and evaluate their situation carefully to make the right choice.
