Facts About Medical Device Rentals

By Lila Bryant


At present, the medical technology is growing at a fast rate with many new equipment and new features being introduced in to the market. In order to remain afloat in this dynamic field, medical practitioners have to invest in the most advanced and specialised facilities. However, it is more costly and rather cumbersome to acquire and fully furnish a health facility as a result of the expensive and obsolete nature of these tools. To ease, this expenditure, many institutions and individuals prefer medical device rentals.

Buying, as opposed to renting, provides access to a wide range of appliances, though it entails a high cash outlay at ago. Medical equipment that can be hired include, but not limited to; computers, MRI machines, surgical systems, X-ray and ultrasound machines and imaging and diagnostic equipment.

The first analysis begins with comparing a buy versus rental decision. This is conducted through both financial and non-financial considerations. It is advisable to start with a non-financial analysis, since most devices are not direct generators of revenue. Such machines and appliances are better analyzed based on their attributes. Their decisions are more subjective.

Non-financial analysis entails ascertaining whether the investment fits with the overall strategy, goals and imperatives of the business. For instance, a business whose strategy an focus is in attracting younger patients then updating the waiting room by adding a play area proves more strategic and in line the business plan. This is opposed to buying or renting a flexible sigmoid scope, though renting the scope would financially be beneficial for the business.

Consider the investment attributes in order to determine the pros and cons. Financial resources are very rare and scarce resources. It is vital to assess the project as far as other investments are concerned. Is the return worth it or are other opportunities less risky and more promising? Renting something that is least used and less beneficial only consumes capital that could otherwise be channeled elsewhere. Where the analysis seems profitable, then the next step is undertaken, which is which is the financial evaluation.

Information gathering is the preliminary step of financial analysis. Collect pertinent information necessary in reaching an informed decision. Shop around for various rental deals and purchase options. Pay attention to close variations such as lease rates, service schedules, and tax implications among others. The data are most important for the calculation of the incremental cash flow, a more dimensional approach that considers the additional revenues and expenses incurred as a result of the project.

However, a complete analysis goes beyond incremental cash flows. Deeply consider such other important analyses as the payback period, net present value and the break-even point. This is the only sure way of considering both the present and long-term financial inclinations of the project. It also shades light on the payback period of the investment.

Simply put the daunting task of renting an appliance and otherwise, lies to a great extent, in examining related benefits. The bottom-line is that the decision should conquer with the overall business plan of your practice and be quite promising compared to other alternative opportunities.




About the Author:



No comments:

Post a Comment