Like businesses of all types and sizes, many healthcare organizations put off the purchase of new equipment during the recent economic downturn due to budget constraints, uncertainty around healthcare reform legislation and staff reductions. As the economy slowly rebounds, many of those organizations are now relying on outdated or unreliable equipment that has been stretched beyond its useful life.
From the Federal mandate that requires the meaningful use of Electronic Health Records (EHR), to diagnostic equipment and technological advances in treatment options, much of the equipment needed to maintain today’s top healthcare facilities comes with a hefty price tag. The large outlay of cash required for many of these purchases can create challenges for the business operations of today’s healthcare providers.
Equipment leasing may be the answer. For many medical practices and healthcare networks, equipment leasing is a viable option for obtaining the equipment required to provide leading patient care while conserving cash and remaining flexible.
12 Benefits of Leasing
- Tax treatment: The IRS does not consider certain leases to be a purchase, but rather a tax-deductible overhead expense. Therefore, medical practices can deduct the lease payments from income, thus reducing the net cost of the lease.
- 100% financing: Since a lease often does not require a down payment, it is equivalent to 100% financing. Healthcare providers can conserve the capital that would have been used for a down payment and reinvest it in the business.
- Immediate write-off of the dollars spent: With leasing, payments are treated as expenses on the income statement, so the technology solution does not have to be depreciated over an extended term.