| Categories: MRI Machine | Author: Resonant Healthcare Imaging Solutions | 0
There are lots of things for your facility to consider when it comes to acquiring new MRI equipment, but one of the most important is figuring out how the equipment and other related costs will fit into the budget.
When your facility purchases a new asset (such as MRI equipment) to create future benefit, it is a capital expense. Operating expenses are day-to-day expenses, sometimes referred to as costs of doing business. If your facility separates its operating budget from its capital budget, you will need to figure out which bucket each MRI-related expense falls or will fall into and budget accordingly.
Here are a few common expenses associated with MRI acquisition and some examples of how your facility might choose to incorporate each expense into its budget:
If your facility decides to purchase MRI equipment and is paying for it outright, this expense likely will come out of your facility’s capital budget. That’s because most facilities use their capital budget to purchase big-ticket items that will last at least six years or longer. Some facilities may already have funds earmarked in their capital budgets for planned MRI equipment upgrades. There are tax implications associated with capital equipment purchases, such as amortization of the equipment over its expected life.
If your facility decides to lease MRI equipment, there are two options, capital leases and operating leases.
With a capital lease, your facility will own the MRI equipment after the lease is up, so the expenses typically will come out of your facility’s capital budget. If your facility wants to spread the cost of the MRI equipment out over several years to keep cash in its coffers and plans on keeping the MRI equipment long-term, a capital lease may be a good option.
Operating leases are a good choice if your facility is looking to upgrade or replace its MRI equipment within three to five years and does not want to own the MRI equipment after the lease expires. Because your facility will not own the MRI equipment after the lease is up, monthly lease payments typically come out of your facility’s operating budget as a cost of doing business.
The cost of MRI maintenance and supplies typically will come out of your facility’s operating budget, unless you need to purchase a major part that is expensive and expected to last longer than six years. If your facility expects its new MRI system to generate additional volume, be sure to adjust the operating budget to accommodate higher supply costs.
If your facility’s purchased MRI equipment comes with a warranty, your facility can decrease the operating budget during the warranty period and increase it after the MRI equipment warranty expires. If maintenance or supplies are included as part of your facility’s lease agreement, you will not have to include this expense as a separate line item in your facility’s operating budget.
If your facility purchases MRI equipment, MRI software and PACS costs will typically be included as a part of the overall capital expense. However, if you decided to upgrade your MRI software or PACS later, it likely would be considered an operating expense.
Costs associated with renovating your facility to accommodate your new MRI system will typically be included in the capital budget, regardless of whether you are leasing or purchasing the equipment. Even if you are replacing an MRI in an existing MRI suite, it is important to remember that your facility may incur still incur renovation costs to accommodate different electrical, HVAC, and operational needs.
If your facility expects a significant increase in the volume of MRI studies because of its new MRI system, operating costs for labor and overhead, such as billing and scheduling, also may increase.
Thinking about how to fit these costs into your facility’s operating and capital budgets can be overwhelming, but there is help available. A third-party MRI consultant can help your facility analyze the financial impact of an MRI system acquisition, while helping you to anticipate future expenses, including maintenance costs and supplies. Plus, a third-party MRI consultant can help you place each expense in the correct financial category to help your facility’s budget stay balanced or work with your accounts to do so.
If your facility is planning to acquire a new MRI system, the MRI specialists at Resonant can help you anticipate expenses and fit them into your facility’s budget. For more information or to speak with one of our MRI experts, call 877.938.5665 or contact us.
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