Finding the best medical equipment at the best price can be a challenge. With the wide variety of programs available, figuring out the best option for your hospital or private practice can be time consuming and frustrating.
When sifting through plans, you will find there are three basic options – purchase, rental and lease. Each option has its advantages and disadvantages. The idea of purchasing new or pre-owned medical equipment is fairly straight forward. After shopping around and finding the best deal, your hospital or private practice will make the purchase. Leasing and renting medical equipment are less clear.
Leasing Medical Equipment
When a hospital leases a piece of medical equipment, the hospital owns it but in most cases the medical equipment is actually sold to a bank working with the hospital. One of the biggest advantages of leasing is the medical equipment is paid in full up front, which means there is no liability for the hospital.
This is perfect for hospitals that do not have a large capital budget. The hospital gets the equipment it needs immediately and at the end of the leasing period, the hospital actually owns the medical equipment item. The ideal leasing candidate will not need more than 20 units at a given time. The candidate will need the medical equipment immediately, but not have enough money in the budget to cover the entire item and they do not want to rent.
Renting Medical Equipment
Just like leasing, when a hospital or private practice rents medical equipment, they have no liability as a customer. The medical equipment does not show up as an asset on the hospital's balance sheet. The hospital is not charged for repairs unless they occur because of abuse or neglect of the medical supply item – this means all normal wear and tear are covered. When the medical equipment reaches the end of its life, there will be no disposal fees. Hospitals and private practices can choose to rent the medical supply items for a few days and return it or for a couple of months at a time.
The ideal candidate for rental is a hospital that needs a small bump in medical equipment. Whether cold and flu season is right around the corner and the hospital knows it will be busy or hospital staff is left scrambling after a recall, rental medical equipment is the perfect solution to the problem. In this case, the hospital does not need to purchase the equipment; they just need a few extra supplies for a period of time.
Some hospitals choose to take part in long-term rental situations. In these cases, the rental units will not show up on the capital budget, because all of the spending will likely come from the operational funds. Since there are no maintenance responsibilities associated with rental equipment – unless negligence or abuse occurs – there is no need for a hospital or private practice to employee repair technicians.
Hospitals and private practices have a number of options available when trying to purchase new equipment. Whether you choose to rent, purchase or lease medical equipment, research each option carefully – you are sure to come to the best solution for your hospital.
Sarah Shannon is National Accounts %26 Marketing Manager of Ardus Medical Inc., is the author of this article about infusion pumps, on-site PM and medical equipment. Ardus Medical Inc. is a Cincinnati-based leading medical supply provider of pre-owned, brand name medical equipment for hospitals and alternate site healthcare organizations worldwide.
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