According to the Forbes article Technology and Rising Health Care Costs, “new medical tech is responsible for 40-50% in annual cost increases” in the healthcare industry.

These pass-through costs have a waterfall effect, ultimately making their way to the patient’s wallet. The newest technological advances, including top-of-the-line equipment, is often a factor in why patients choose to select one provider or network over another. Going even further, where do providers themselves stand on the issue of lease vs. buy in regard to healthcare equipment?

Learn more about Accruent’s Equipment Leasing option for Healthcare.

Here are the three reasons our customers have found for leasing equipment in the healthcare industry:

Budget

Leading medical practices and networks have found their answer to lowering costs and reducing the percentage of increase each year through equipment leasing. The high cost of purchased equipment typically sways decision-makers, especially in privately owned diagnostic centers or smaller hospitals, who are usually responsible for installing their own equipment. With medical leases running between three to four years, according to MD Magazine's Weighing the Benefits of Buying Versus Leasing Medical Equipment, providers no longer have to consider purchasing an extended warranty. Once the lease expires, they can simply choose a new piece of equipment that is even more cutting-edge than the last.

Patient Care

Medical facilities are always looking for ways to improve patient care and proper treatment. Cost, however, is generally the primary prohibitive factor. With the unknown cost factor (e.g., reactive maintenance, asset failure, etc.) removed because of an effective equipment leasing strategy, the quality of receivable care and treatment options typically increases for the patients. Security concerns about equipment data are also alleviated due to many equipment leasing organizations providing an end-of-life data security clause within the equipment leases, requiring the equipment manufacturer to provide patient data to the healthcare provider in compliance with the law.

Flexibility

Hospitals need to be flexible, with providers able to switch out equipment as the needs of their patients change, or as new and improved equipment hits the market. Leasing medical equipment offers a cost-effective way to have the most up-to-date medical devices without the constant worry of depreciation. Ultimately, it is a common occurrence for organizations in any industry to experience changes, whether it be within personnel, policy, or procedures. Equipment leasing provides additional peace of mind for responsible parties who may need to adjust lease terms or payments quickly and effectively.

Explore Accruent's Medical Device Lease Management Software

Contact us to understand how we can support your equipment leasing compliance, mitigate risk, and provide transparency across your leased portfolio.