Leasing Medical Equipment: An Introduction
Medical equipment is characteristically costly and soon becomes obsolete as new technologies and features are developed. Those are two factors that make it especially difficult for some practices to buy the things they need to give patients the best possible care. Fortunately, leasing medical equipment is a viable option.
Pay For Things Over Time
One of the most attractive things about a medical equipment lease is it allows you to make associated monthly payments that represent an agreed-upon rate. That means it’s much easier to budget for the cost of equipment because you know you’ll be paying a particular amount to use it and that your payment plan will continue until a certain date.
You’ll Probably Have the Option to Buy
Another advantage of leasing medical equipment is that you can get to know the leased products to gain a clearer understanding if they’ll meet the needs of your patients and practice. In contrast, if you’re not happy with a piece of equipment you purchased up front, you’re probably stuck with it unless there’s an identified defect that occurs while the product is still under warranty.
At the end of a lease term, you’ll usually be able to either return the equipment to the leasing company or buy it. By choosing the latter option, you’ll generally have access to a lower price than you’d have to pay if purchasing the equipment new. That’s because the rate you’re given takes depreciation into account, as well as the fact you’ve already paid specified amounts to use the product for the duration of the lease term.
Some Equipment Is Eligible for Tax Credits
In some cases, you may be able to deduct the cost of leased medical equipment as a business expense while filing your taxes. To get your questions answered about whether there could be tax credits associated with leasing medical equipment, get advice from a trustworthy accountant.
You May Not Have to Cover All Repair Costs
When equipment breaks down unexpectedly, it causes hassles for everyone involved. One of the potential benefits of leased medical equipment compared to things purchased up front is that some repair costs may be covered within your lease. Furthermore, the lease agreement may state only authorized companies on a particular list should perform repairs, meaning you don’t have to spend time trying to find a provider on your own.
This is just a brief overview of why it’s often better to lease medical equipment instead of buying it. The benefits should be obvious, especially if cost is a concern.