Healthcare Equipment Acquisition in an Improving Economy
Businesses are ramping up to meet increasing demand and market opportunities in response to continued signs of economic improvement. Acquiring equipment to operate and grow is critical, and for smart healthcare businesses and providers, equipment financing is a key acquisition strategy. Equipment financing is tailored to individual business considerations, including that of maintaining cash reserves.
The current market situation finds equipment financing as vital and available as ever, enabling healthcare organizations to secure the assets they need. Equipment financing provides many benefits that fit the operational and financial objectives of all types of organizations, from Fortune 100 corporations to one-person operations. A deeper understanding of these benefits will enable healthcare organizations to strategically leverage equipment financing not only during improving economic conditions, but for any business cycle.
In the healthcare sector, increasing activity is expected, with a fair amount of pent-up demand unleashed as providers look to make planned purchases that were delayed amid the challenging economy.
“Healthcare IT, including electronic medical records (EMR) is the major growth area for 2011,” said Steve Riggs, President, Global Healthcare and Clean Technology, De Lage Landen.
“Hospitals and physician practices are moving to achieve the necessary ‘meaningful use’ standards in order to qualify for stimulus funds under the HITECH Act. While stimulus funds are designed to offset the cost of implementing EMR and associated technologies, in a traditional capital budget scenario the provider must front all of the money for the system while the stimulus funds are paid out over time. That makes equipment financing an attractive option because it allows providers to pay over time—which is the same way they will receive the stimulus funds,” Riggs added.