Benefits of Financing Medical Equipment For Small Hospitals

This year, small hospitals are seeing more red than black, as financial challenges continue to mount. From inflation on medical supplies to labor, hospitals are facing a number of financial obstacles. 

 

In fact, half of the hospitals in the United States ended 2022 with a negative operating margin. 

For small hospitals, in particular, the cost of acquiring the medical equipment they need can be quite difficult to overcome. After all, even though a hospital may be small, the range of medical equipment needed remains vast.

One of the best ways of overcoming this is to finance medical equipment. In this post, we’ll explore medical equipment financing in further detail so that you can get a better understanding.

Get the Equipment You Need Quickly

There’s only one place to begin, and this is with the speed at which you’ll be able to obtain the equipment you require. 

The vast majority of medical leasing companies on the market today have designed simple application processes, meaning hospitals will be able to fill out the application with ease. 

They also recognize that healthcare facilities cannot afford to wait for decisions on potentially life-saving equipment, so they have the personnel and processes in place to ensure every application is dealt with swiftly.

If financing is approved, the process of getting the equipment you need can be quicker than you think, though delivery times vary depending on the equipment you’re looking for. 

Clear Path to Ownership

Depending on your lease agreement, you may own the equipment at the end of the contract term. You may need to make a balloon payment at the end of the agreed term. However, this does depend on the nature of your contract. 

This benefit is especially important if the device or machine is unlikely to become obsolete anytime soon. Even if you want to upgrade to a newer piece of equipment, it can make more sense to take ownership of the financed machine so that you can trade it in towards the purchase of an upgraded model.

Prevent Obsolescence 

In addition to the benefits we’ve mentioned, financing medical equipment is a good way of preventing obsolescence. 

With the rapid technological innovation we’re seeing today, maintaining the latest devices can be costly. This is especially the case in healthcare, whereby previous devices are being upgraded, and new models are released on a regular basis.

State-of-the-art equipment isn’t cheap and many hospitals simply are unable to procure the latest and greatest technology. This makes it much more challenging to attract the best clinicians and patients to your hospital, which could inhibit the long term financial health of the hospital.

If that wasn’t bad enough, patient safety and staff productivity can be compromised if you’re using outdated equipment. The former can have devastating consequences when it comes to patient care. 

Enjoy Greater Cash Flow 

This is the main reason why small hospitals opt to finance medical equipment. Many hospitals experience cash flow issues at one point or another. 

Working capital is critical to every hospital. This enables funds to be spent in departments with the greatest need, such as investing in cybersecurity software or hiring a new clinician. 

If you were to purchase medical equipment outright, it would put a considerable dent in your available capital. This could mean putting your facility at greater a financial risk later down the line. 

With medical equipment financing, you can lower this risk and enjoy much greater financial control.

Finance More Than Medical Equipment

Last but not least, as touched upon in the introduction, hospitals face a number of financial challenges today. Therefore, it’s not rare for hospitals to require financing for different areas of their business, not just medical equipment. 

The benefit of working with an independent leasing partner is that you have the opportunity to finance just about anything that your facility may need. Furthermore, being able to easily manage your leases under a single company will save you the headaches of tracking down multiple lease agreements and managing multiple vendors.

Enjoy the Benefits of New And Used Medical Equipment Financing

So there you have it: all of the benefits associated with medical equipment financing. We hope that this has given you a better understanding of why it makes sense to finance medical equipment if you run a small hospital. You’ll be able to keep your costs manageable so that your hospital can continue to thrive.