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.
One can rent a wide variety of these instruments. Some of the tools you can rent include surgical implements, MRI machines, EMR software, computers, X-ray and ultrasound machines, imaging and diagnostic instruments, surgery tables among others. However, before embarking on this agreement, it is important to consider some vital factors, as illustrated below.
First and foremost, closely analyze the financial implications of both a buy and rent decision. This is the surest way to enhance the most effective financial decision. It entails the prices of the concerned products across various major manufacturers and dealers while comparing with lease quotes from the medical leasing companies.
But to enhance an inclusive financial analysis, be sure to collect all your pertinent financial data at your disposal. It is this information that will enable you to analyze and evaluate the feasibility of a particular investment. Determine the incremental cash flows (additional revenues and expenses) resulting from the investment. Incremental analysis will illustrate how a particular investment is going to improve the overall business performance, as opposed to simply analyzing whether or not a single portfolio will generate profit on its own or not.
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.
While comparing a buy versus rent decision, you should put in mind that the rate of the lease, is determined by some other factors, some within while others beyond your control. An example of a controllable factor is the rental period. Consider the duration of rent and the financial implication associated.
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).
Simply put, the decision process whether to rent or buy a medical equipment relies more on ascertaining which option will be more beneficial to your practice; the bottom line; evaluate how the investment fits with your general business plan, compare it to alternative opportunities in your practice and determine whether it will be profitable on its own while improving the present and future overall financial performance of your practice.
One can rent a wide variety of these instruments. Some of the tools you can rent include surgical implements, MRI machines, EMR software, computers, X-ray and ultrasound machines, imaging and diagnostic instruments, surgery tables among others. However, before embarking on this agreement, it is important to consider some vital factors, as illustrated below.
First and foremost, closely analyze the financial implications of both a buy and rent decision. This is the surest way to enhance the most effective financial decision. It entails the prices of the concerned products across various major manufacturers and dealers while comparing with lease quotes from the medical leasing companies.
But to enhance an inclusive financial analysis, be sure to collect all your pertinent financial data at your disposal. It is this information that will enable you to analyze and evaluate the feasibility of a particular investment. Determine the incremental cash flows (additional revenues and expenses) resulting from the investment. Incremental analysis will illustrate how a particular investment is going to improve the overall business performance, as opposed to simply analyzing whether or not a single portfolio will generate profit on its own or not.
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.
While comparing a buy versus rent decision, you should put in mind that the rate of the lease, is determined by some other factors, some within while others beyond your control. An example of a controllable factor is the rental period. Consider the duration of rent and the financial implication associated.
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).
Simply put, the decision process whether to rent or buy a medical equipment relies more on ascertaining which option will be more beneficial to your practice; the bottom line; evaluate how the investment fits with your general business plan, compare it to alternative opportunities in your practice and determine whether it will be profitable on its own while improving the present and future overall financial performance of your practice.
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