Medical facilities are faced with one of the most expensive and somehow sophisticated equipment investments. In order to have a significant impact on their clients, individuals and institutions that are engaged in practicing medical services are faced with the need of procuring the latest and state of the art equipment. However, with all this investment, the very tools are quickly rendered obsolete by the passage of time and the ever changing technology. It is therefore important and necessary to thoroughly analyze each and every investment decision in order to realize the most economical use of the scarce financial resources. This particularly entails a close comparison between making a purchase and renting medical equipment.
It is possible to finance your medical facility 100 percent by renting tools. Some of the medical implements offered for rental include; X-ray and ultrasound machines, surgery items, MRI machines, computers, imaging diagnostic tools and EMR software. There are however some considerations to be made before settling on the rental decision.
Be sure to begin with evaluations of a rent vs. Buy decision. Analyze the two alternatives in order to reach the most beneficial and efficient decision. Compare the price of buying the item against various lease quotes available, while considering different manufacturers, dealers and leasing companies.
A good supply of information is important for a complete financial analysis. You should therefore access the most vital and pertinent financial information before embarking on the analysis. The data will be helpful in assessing the feasibility of the particular project, which can only be arrived at by estimating the cash flow of the investment. The incremental cash flow denotes the additional expenses and revenues accruing from the project. It is from this cash flow that one can know how a particular project will better the performance of the business, which is contrary to a rather unidirectional approach as to whether a particular project will generate profit on its own.
Although many businesses usually stop here, this should not be the case. You should further evaluate the data with other such analyses as break even, payback value and net present value. The long term and short term implications of a given investment can only be evidenced through this evaluation, including the payback period.
While comparing a buy versus rent decision, you should put in mind that the rate of the lease, is determined by some other factors, some within while others beyond your control. An example of a controllable factor is the rental period. Consider the duration of rent and the financial implication associated.
The frequency of repair of the concerned item must also be considered, together with the kind of lease to be adopted. The service schedule (the frequency and convenience of repair) of the tool ought to be put in mind. A good deal should entail fewer repairs, with the service being undertaken on-site. Leases can also be classified as capital and operating. Capital leases have capital allowances, with residual ownership of the equipment while, operating leases are purely rental agreements. As such, capital leases are relatively expensive.
All in all, the resultant decision should be a win-win situation. The project so undertaken must be beneficial not only to your practice, but also to the ultimate client. The customer should reap from the comfort and affordability associated with the decision. For the business, it ought to be in line with the future plans and compare well with other alternative foregone opportunities in the practice.
It is possible to finance your medical facility 100 percent by renting tools. Some of the medical implements offered for rental include; X-ray and ultrasound machines, surgery items, MRI machines, computers, imaging diagnostic tools and EMR software. There are however some considerations to be made before settling on the rental decision.
Be sure to begin with evaluations of a rent vs. Buy decision. Analyze the two alternatives in order to reach the most beneficial and efficient decision. Compare the price of buying the item against various lease quotes available, while considering different manufacturers, dealers and leasing companies.
A good supply of information is important for a complete financial analysis. You should therefore access the most vital and pertinent financial information before embarking on the analysis. The data will be helpful in assessing the feasibility of the particular project, which can only be arrived at by estimating the cash flow of the investment. The incremental cash flow denotes the additional expenses and revenues accruing from the project. It is from this cash flow that one can know how a particular project will better the performance of the business, which is contrary to a rather unidirectional approach as to whether a particular project will generate profit on its own.
Although many businesses usually stop here, this should not be the case. You should further evaluate the data with other such analyses as break even, payback value and net present value. The long term and short term implications of a given investment can only be evidenced through this evaluation, including the payback period.
While comparing a buy versus rent decision, you should put in mind that the rate of the lease, is determined by some other factors, some within while others beyond your control. An example of a controllable factor is the rental period. Consider the duration of rent and the financial implication associated.
The frequency of repair of the concerned item must also be considered, together with the kind of lease to be adopted. The service schedule (the frequency and convenience of repair) of the tool ought to be put in mind. A good deal should entail fewer repairs, with the service being undertaken on-site. Leases can also be classified as capital and operating. Capital leases have capital allowances, with residual ownership of the equipment while, operating leases are purely rental agreements. As such, capital leases are relatively expensive.
All in all, the resultant decision should be a win-win situation. The project so undertaken must be beneficial not only to your practice, but also to the ultimate client. The customer should reap from the comfort and affordability associated with the decision. For the business, it ought to be in line with the future plans and compare well with other alternative foregone opportunities in the practice.
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