| Categories: MRI Machine | Author: Resonant Healthcare Imaging Solutions | 0
Deciding whether your facility should buy, lease, or rent MRI equipment is a big decision, and understanding the differences between the available options is the first step to choosing the right solution for your practice. Although many facility administrators assume that larger facilities always buy while smaller facilities always lease or rent, the truth is that each individual facility should consider each MRI equipment acquisition option and determine how they align with their goals and circumstances.
For most practices, their MRI acquisition decision - whether to purchase versus lease or rent MRI equipment - is largely based on the amount of money the facility has available to fund the MRI acquisition. Purchasing MRI equipment usually involves a large down payment that not all facilities are prepared to pay.
Facilities that have long-term equipment replacement plans are more likely to have funds set aside for planned acquisitions or have access to loans at favorable terms, making them more likely to purchase MRI equipment. Facilities that generate significant revenue from MRI operations are also more likely to purchase MRI equipment.
MRI equipment also tends to have a long life, and many facilities find that purchasing the equipment is more profitable in the long run. Tax incentives can also make a purchase more attractive than a lease for some facilities, but you should always consult an accounting professional to discuss your facility’s specific situation.
On the downside, buying MRI equipment is a large investment that can expose a facility to increased risk if unforeseen problems arise, including lower-than-expected MRI revenue, significant downtime, or higher repair costs as the unit gets older. Also, facilities that own MRI equipment tend to keep it for a longer period of time and often do not have the financial flexibility to upgrade, which could expose owners to a risk of decreasing revenue if they are out-marketed by competitors with more advanced MRI technology.
Leasing typically involves lower initial costs, increased flexibility, and less risk than purchasing equipment. Most MRI equipment leases require a monthly payment over a 24- to 72-month term, and many leases include a buy-out option after the lease is up. Leasing also provides facilities with the flexibility to renew the lease or return the equipment.
Many facility managers incorrectly believe that leasing MRI equipment is always more expensive in the long run, but this is not necessarily true. It comes down to the terms and length of the lease and the facility’s overall asset management goals. In fact, payments on MRI equipment leases can be structured in a variety of ways to accommodate a facility’s cash flow and can even be tax-deductible in some situations.
The lessor (usually the vendor or the manufacturer) retains ownership of the equipment, so leasing can present less risk for MRI facilities, especially if the lease includes provisions for maintenance and repairs. However, ending your MRI equipment lease early can involve significant early termination penalties, so it is important to carefully review the terms of the lease before signing on the dotted line.
Renting MRI equipment is usually more short-term than leasing and is usually more expensive. However, renting might be the right choice if a facility has little money to invest in MRI equipment up front, is willing to pay more each month, and wants a flexible, “all-inclusive” package for service and installation.
Ultimately, the decision to buy, lease, or rent your facility’s MRI equipment depends on your long-term asset management strategy, your financial situation, and the level of risk your facility is willing to assume, which is a lot to consider.
Many facilities opt to hire a third-party MRI acquisition consultant to assist them in their analysis. A third-party MRI acquisition consultant can not only help your facility to decide on the right type of equipment, but also help you figure out whether buying, leasing, or renting is best for your practice. Your third-party MRI acquisition consultant can also help you find the best solutions for your facility’s unique concerns by providing advice on service contract selection, customized leases, buy-out options, risk management, and financing.
If your facility is considering acquiring a new MRI system, our MRI specialists can help your facility select the right MRI system under the right terms. For more information about buying, leasing, or renting MRI equipment, please call 877-938-5665 or contact us.
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