With the shrinking margins in the practice of medical services, the individuals and institutions engaged are becoming heavily concerned. This is, to a great extent, contributed by the high cost of investment, particularly in acquiring the sophisticated machines and tools entailed. The high initial investment is just out of proportion, coupled with their high rate of depreciation and obsolescence. Yet to be able to offer the most attractive and satisfactory services to clients, some tools are indispensable. It is due to this reason that there is a paradigm shift towards 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.
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.
A good supply of information is important for a complete financial analysis. You should therefore access the most vital and pertinent financial information before embarking on the analysis. The data will be helpful in assessing the feasibility of the particular project, which can only be arrived at by estimating the cash flow of the investment. The incremental cash flow denotes the additional expenses and revenues accruing from the project. It is from this cash flow that one can know how a particular project will better the performance of the business, which is contrary to a rather unidirectional approach as to whether a particular project will generate profit on its own.
Although many businesses usually stop here, this should not be the case. You should further evaluate the data with other such analyses as break even, payback value and net present value. The long term and short term implications of a given investment can only be evidenced through this evaluation, including the payback period.
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.
Another element worth considering is the schedule of service (repair). During the period of rent, the user is responsible for maintenance of the item. It is therefore essential to opt for a deal having a fair number of services, coupled with convenient service time. For example, on-site servicing proves rather convenient. The type of lease, whether operating or capital, also determines the amount of monthly payments. Operating leases are less expensive than capital leases, they are entirely rental agreements. On the other hand, Capital leases entail residual ownership of the item.
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.
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.
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.
A good supply of information is important for a complete financial analysis. You should therefore access the most vital and pertinent financial information before embarking on the analysis. The data will be helpful in assessing the feasibility of the particular project, which can only be arrived at by estimating the cash flow of the investment. The incremental cash flow denotes the additional expenses and revenues accruing from the project. It is from this cash flow that one can know how a particular project will better the performance of the business, which is contrary to a rather unidirectional approach as to whether a particular project will generate profit on its own.
Although many businesses usually stop here, this should not be the case. You should further evaluate the data with other such analyses as break even, payback value and net present value. The long term and short term implications of a given investment can only be evidenced through this evaluation, including the payback period.
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.
Another element worth considering is the schedule of service (repair). During the period of rent, the user is responsible for maintenance of the item. It is therefore essential to opt for a deal having a fair number of services, coupled with convenient service time. For example, on-site servicing proves rather convenient. The type of lease, whether operating or capital, also determines the amount of monthly payments. Operating leases are less expensive than capital leases, they are entirely rental agreements. On the other hand, Capital leases entail residual ownership of the item.
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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