For a facility with budgetary limitations, the cost of medical equipment can take things from limited to tight with one decision. Luckily, many vendors and suppliers offer the ability to finance or lease the equipment. But are there risks and benefits of doing this, even if it’s appealing right out of the gate?
Here are a few things to consider before leasing medical equipment.
An advantage to leasing medical equipment is the affordability of maintenance. Most devices come with their own guarantees and warranties, allowing for regular care and maintenance. Under these guidelines, you can afford to have the devices repaired and serviced by the vendor without dipping further into the budget.
Unfortunately, you cannot anticipate the precise amount of usage a piece of equipment will require. Sometimes, things like the patient base or practice models change in frequency, which could mean your leased equipment gets used less or not. With that in mind, you’re still held to your lease agreement regardless of usage, which means the settled payment obligation.
There is always the option to return the device and break the lease, but chances are there is still a fee for breaking the terms and agreements earlier than agreed upon.
Cost Over Time
Another key thing to consider before leasing medical equipment is your over-time cost expenditure. While upfront, your cost is budget-friendly and appealing due to the monthly or yearly payment plan; over time, you will pay more than the device is worth. You must take into account the credit rating factors that play into the interest rates.
Your vendor selection is a critical decision that plays a substantial role in your time with leased equipment. The company you partner with is essentially your lifeline for administering quality care through devices in your facility.
The vendor’s attentiveness to your needs and ability to work with you over time are factors to consider beforehand. Sometimes, facilities will interview several vendors before choosing the best fit.
The decision to purchase or lease medical equipment can greatly weigh management and administration. Remember to keep patients at the center of your decision-making and then fall in line with the budget’s limitations.