The operational and financial benefits for hospitals to lease medical equipment, IT hardware and many software solutions are many. When your facility leases, you can refresh equipment on a planned timetable, making it easy to keep current technology in place and keep maintenance costs low. In the always-changing healthcare environment where new governmental regulations come almost every day, leasing gives you the flexibility to upgrade or refresh your technology as needs change. Leasing also allows you to diminish the risks, hassles and high costs normally associated with IT disposal. A healthcare- savvy leasing company can help you comply with HIPAA and PHI mandates when it’s time to dispose of obsolete hardware.
Leasing also allows you to put working capital to better use on revenue-generating activities and offers improved budget management with predictable cash flows. Many leasing companies will match your payments to the useful life of equipment, while eliminating mismatched depreciation and book write-downs. Often, tax benefits can be achieved by deducting lease payments as an operating expense, and you can strengthen your balance sheet by keeping assets off the books, thus improving performance ratios.
Using leasing as an option, many healthcare providers have reduce their costs associated with acquiring, managing and disposing of IT hardware by over 20 percent.
Why choose an independent leasing company?
Medical equipment and IT hardware manufacturers encourage the use of their own captive finance organizations for leasing their equipment. This “one-stop shopping” approach seems logical, but often comes with many problematic restrictions. Manufacturers are in the business of selling hardware – not providing leasing services. Their leasing terms and conditions may not always serve your hospitals’ best interests.
Since they do not manufacture the equipment they lease, the only goal of a vendor-independent equipment lessor is to implement a leasing solution that makes sense for you. An independent lessor will help you create the technology solution that works best for your hospital, regardless of manufacturer. You can combine equipment from multiple manufacturers and vendors on the same equipment schedule and invoice.
Most independent leasing companies base their lease rates on the technology being employed, so pricing is consistent across all manufacturers’ products. And, since an independent lessor is product-neutral, you can maintain true flexibility to change platforms or vendors when you need to.
An independent leasing company’s only obligation is to their clients. Their single focus is to provide the best leasing service possible regardless of the equipment you choose, since they don’t have a manufacturer’s best interests in mind.
It’s the technology you need to acquire, not the ownership
The value of technology comes from its use, not its ownership. When you lease, you have the equipment you need, for as long as you need it, plus a structure that makes end-to-end equipment management easier. There are several reasons why leasing is a superior option for acquiring the technology you need – be it IT hardware or sophisticated software applications.
Technology requirements change so rapidly in healthcare that buying IT hardware and software solutions is really impractical. By the time your hospital gets the technology paid for, it is probably obsolete. And then, your hospital must deal with how to dispose of all the protected health information (PHI) that is on the obsolete hardware. Leasing gives you the flexibility to always remain state-of-the-art when it comes to technology acquisition. In addition, a knowledgeable healthcare leasing company will be able to handle all of the equipment disposal requirements in accordance with HIPAA regulations. And, an independent, product-neutral leasing company provides you the freedom to always make the best choice of technology solutions to meet your hospital’s specific needs.
Technology is a tool that can help your facility provide the very best care while meeting the constantly-growing number of governmental mandates. You need these critical tools, but you do not need to own them.