12 Benefits of Leasing Equipment
Scott Daugherty, for HealthLeaders Media
, July 25, 2011
- Flexibility: As healthcare facilities grow and needs change, the lessee may be able to add or upgrade technology at any point during the lease term.
- Asset management: A lease provides the use of the technology solution for specific periods of time at fixed payments. The leasing company assumes and manages the risk of technology ownership. At the end of the lease, if the healthcare provider elects to return the technology, the leasing company is responsible for the disposition of the asset.
- Upgraded technology: Technology solutions that could depreciate quickly should be leased to limit a healthcare facility’s risk of getting caught with obsolete equipment. Plus, leases make it easier to upgrade or add technology solutions to meet ever-changing needs.
- Speed: Leasing can allow you to respond quickly to new opportunities with minimal documentation and red tape. Many leasing companies approve applications within a few hours.
- Improved cash forecasting: When healthcare facilities lease, they can accurately forecast the cash requirements for equipment since they know the amount and number of lease payments required, and with leases there are no floating fees.
- Flexible end of term options - There are typically three flexible options at the end of a term. The lessee can return the equipment, purchase the equipment from the leasing company or extend the lease for an additional period of time.
- Tax benefits: Leasing companies can pass the tax benefits of ownership on to the healthcare facility in the form of lower monthly payments.
- Easier financing than loans: With a lease, healthcare facilities can avoid requirements like compensating balances, large down payments, client list reviews and cash-flow projections, making the finance process faster and easier.
- Finance services: Training, support and other services are come of the most important components of a new equipment acquisition, particularly when obtaining EHR systems and other healthcare technology. Yet these “soft costs” are some of the most overlooked during the decision-making phase. Often, everything involved in a technology purchase, from servers and scanners to software and services can be bundled into one predictable monthly lease payment, making it easy to budget for all costs associated with a technology acquisition.