When it comes to obtaining medical equipment, you typically have two options you can choose from: you can buy equipment directly from a provider — paying for it in full — and own it outright. Alternatively, you can decide to acquire the medical equipment you need from a lease provider. Today, there are a lot of lease businesses that provide this solution.
Deciding between both options can be a challenge — and there is often not a right or wrong answer. Rather, it is a case of figuring out what makes the most sense for your specific needs.
Understanding The Difference
Before we can look at the benefits and the drawbacks of each solution, it’s important to know the key differences between both options.
What It Means To Purchase Medical Equipment
In terms of purchasing equipment for medical use, you pay a fixed, one-time price for the machine, and then you own it. You are responsible for the upkeep, and if you want to sell it, this is your responsibility as well.
What It Means To Lease Medical Equipment
On the other hand, an equipment lease is a rental agreement, which works over a period of time — your lease agreement will specify the exact time frame. During the contract period, you have exclusive use of the machine and, in return, you will pay a monthly fee to the “lessor” — the person or company who actually owns the machine. Leasing enables you to pay fixed monthly payments at a more manageable rate. However, keep in mind that you do not own the machine.
The Case For Leasing Against Buying
One of the main reasons for leasing medical equipment is that it is more flexible. If you do not want to make such a significant commitment in terms of purchasing a machine outright, then this makes a lot of sense. In addition, you can easily upgrade to a newer model, which is important in ensuring your medical facility is up to date. If you were to buy medical equipment, then you would then need to sell it to upgrade.
Another benefit to consider is the fact that there is no large down payment, as is often the case when purchasing medical equipment. This means the barriers to entry are lower. Plus, you are not going to need to handle the hassle of maintenance or repair if the machine has technical issues. If the medical machine breaks, the leasing company will provide you with a replacement, and they will have the worry of getting the machine fixed.
The Case For Buying Against Leasing
There are situations when it makes sense to look for medical equipment for purchase, such as an MRI machine for sale or other machines. A major benefit associated with this is the fact that you are going to own the equipment outright — it is yours — it is a business asset. This is similar to the argument for and against purchasing a house or renting one — there are many people that prefer buying because they do not like the thought of putting money into something they will not own in the end.
In addition, you can also make modifications to the machine. It is yours, so you can make changes as you see fit. This means you can upgrade parts if necessary. Furthermore, if you go down the leasing route, you will make manageable monthly payments — but you are also going to have to pay interest as well. So, in the long run, you may end up paying a lot more for the machine.
Deciding On The Right Option For You
There are pros and cons associated with both options — and there are no right or wrong answers — so it’s all about figuring out what makes sense most sense in your specific situation. However, there are some important things that all potential buyers or leasers should keep in mind.
You should think about whether or not the medical equipment is integral to your daily activities, and if this machine is something you are going to be using all the time. If so, then purchasing can be a very attractive and sensible solution. If not, then you may want to consider leasing, otherwise, you are going to end up purchasing and paying for a machine that simply sits and gathers dust most of the time. If this is your situation, leasing when you need the machine — and only paying for when you use it — makes more sense.
No matter what route you decide to go down, it is important to take the time to find a company and to consider exactly what medical equipment, which make and model, is going to be right for you.
Do Your Research
Remember, when it comes to medical equipment, it is not a case of one solution being better than the other. Rather, it is about understanding your needs and your situation, so you can find the right solution for you. Take the time to understand your options carefully.