Anyone who owns or manages a medical practice knows that large amounts of medical equipment are necessary to provide a high level of care. Unfortunately, medical equipment also usually has a very big price tag, which can put a medical practice in a precarious position if they have to purchase all of it. Luckily, there are other options. More and more medical practices are opting to lease medical equipment instead of buying it outright. There are several big advantages to leasing medical equipment, such as:
One of the biggest benefits of leasing medical equipment is the fact that it gives medical practices the ability to reserve capital. Even if a medical practice chooses to purchase medical equipment and use financing, that still requires a hefty down payment. In most cases, leasing medical equipment does not require any money upfront. Thus, by leasing medical equipment, a medical practice can reinvest money into the practice instead of parting with a large amount of money to purchase medical equipment.
Protection Against Obsolete Technology
In this day and age, technology is advancing at an astounding rate. The last thing any medical practice wants is to invest a huge amount of money into medical equipment that is obsolete just a few years later. When a practice opts to lease medical equipment, they are protected from getting stuck with an outdated piece of equipment. At the end of the lease, there is no obligation to buy, so a medical practice has the option to return medical equipment if there is new technology that is needed in the office.
Leasing medical equipment gives a medical practice a lot of flexibility. During the lease term, it is usually easy to upgrade medical equipment if the need arises. The terms of a medical equipment lease are also quite flexible, and you can choose a lease length that works best for your practice. When the lease on your practice's medical equipment ends, you can opt to purchase the equipment, return the equipment, or sign another lease.
In most cases, leased medical equipment is not considered a purchase made by the medical practice. Since lease payments are made monthly, they are considered a recurring overhead expense, meaning that they are tax deductible. Leasing medical equipment gives a medical practice great tax benefits that offset the cost of the lease, and in the long run, this can lead to saving a lot of money.