ExecutiveChronicles.com | Rent or Buy? 6 Things to Consider Before Making Decisions About Medical Equipment for Your Clinic | Buying medical equipment for your clinic can be a huge decision, especially as the costs can run into the tens of thousands of dollars. So, before you jump right into making a decision, why not spend some time doing your homework? Here are a few things worth considering:
Which Supplier to Choose
Whether you intend to rent or buy medical supplies and equipment, it’s worth looking at various online medical equipment suppliers to see what they offer. Not every provider you come across is going to be the best one for your needs.
How Often You Replace Equipment
To decide whether to rent or buy medical equipment, it makes sense to look at how often you replace or repair it. Spending tens of thousands of dollars on new equipment may not be financially viable for many small clinics.
So, in this instance, renting can be an ideal way to keep new, reliable equipment flowing into your medical facility.
Your Need for Flexibility and Modifications
Choosing to buy medical equipment for your clinic can be a wise decision to make. Especially if your specific needs dictate that you must modify or adjust the equipment to suit your clinic. When you lease gear – be it medical or something else – there are strict rules around what you can do with it.
If you damage, modify, or otherwise breach your lease conditions, you may end up having to buy the equipment anyway. So, before you sign yourself up to a lease agreement, read through the fine print. You may realize that purchasing it is the best call to make.
Evolving of Technology
We have made many medical advancements over the years, with some of the greatest occurring in the last two decades. As a result, it’s essential to look at how likely it is for medical equipment to become outdated or obsolete in the time it takes you to pay for it.
It might seem like a good idea at the time to invest in the latest and greatest tech, but for how long will it remain the latest and greatest? Leasing gives you the freedom to upgrade your lease agreement to include the most advanced medical equipment of the time.
The Ins and Outs of Tax
Business taxes are a fickle beast, and most medical facilities run just like a business. So, if you weigh up the pros and cons of leasing versus buying, you may find that comparing the two tax situations is worth your while.
In most cases, leasing expenses are deductible for businesses under Section 179 Qualified Financing. If you are not sure how this works, contact your accountant. They can fill you in on your tax deduction options surrounding renting or buying medical equipment.
Renting can seem like an excellent idea when you see the bite-sized repayments, but is it really the most affordable option? As it turns out, not always. You often pay interest on leasing costs, which then make the machine more expensive to purchase at the end of the lease period if that’s what you set out to do.
Some lenders also put you into a fixed-term contract with mandatory servicing. If you find that you don’t use that piece of equipment for the entire lease period, you’ll end up paying for its use when you’re not using it.
There is a lot to think about when purchasing or renting new medical equipment. Don’t rush the decision. Consider your tax obligations, hidden costs, and the best suppliers from which purchase equipment. You can then be well-informed before you decide.