It’s a common strategy to lease medical equipment instead of buying it outright. Some businesses choose to lease to minimize upfront costs; others lease to avoid being stuck with obsolete equipment in a few years.
Keep in mind that medical equipment lease rates only include the equipment’s devaluation. With a lease, you only pay this amount instead of the equipment’s total value.
This makes it a more affordable alternative to buying, at least for equipment that you only want for a few years or so. Many medical facilities appreciate the fact that you can deduct medical equipment leases on your taxes.
You should also note that the definition of medical equipment is incredibly vast. “Medical equipment” may include equipment for medical labs, medical offices, medical imaging, surgeries, and diagnostics. It may also include MRI machines, EMR software, X-rays, surgery tables, ultrasound machines, and any other piece of equipment used in a medical facility.
- Examples of Medical Equipment Lease Rates
- What Affects Medical Equipment Lease Rates?
- Other Variations in Medical Equipment Lease Rates to Know
- Ready to Lease Medical Equipment?
Examples of Medical Equipment Lease Rates
With so many pieces of medical equipment available on the market, the prices obviously vary based on the equipment type. The following example prices provide a good idea of what you can expect to pay to lease some of the most common items.
The Average Cost Based on Price
One of the biggest factors affecting a medical equipment lease’s cost is the value of the equipment in question. The factors mentioned below will determine the rate you pay within the range.
Generally, you should expect to pay between $40-$60 every month to lease $1,000 of medical equipment. For example, renting a machine worth $10,000 will cost $400 to $600 monthly. Renting a $100,000 machine will cost $4,000 to $6,000 each month.
Examples of Rates
If you were to lease a piece of equipment valued at $100,000, you could expect to pay $2,173 monthly with a 60-month lease, $3,327 each month with a 36-month lease, or $9,177 monthly with a 12-month lease.
If the equipment you lease is worth $500,000, these figures increase to $10,661, $16,480, and $45,423, respectively.
If you were to lease equipment worth $1 million for 36 months, you would pay around $27,950 each month.
What Affects Medical Equipment Lease Rates?
As with any other lease, you can expect the rates for your medical equipment lease to vary based on a long list of factors.
The Type of Equipment
It should go without saying that the type of medical equipment you lease will affect the price. Larger and more complicated pieces will have a higher price.
The Contract Length
Your contract term will likely influence your pricing. Generally, most leases will charge lower rates if they last for a longer amount of time. This comes from the fact that the company leasing the equipment to you can count on a steady income flow.
For example, you should expect to pay less each month for a five-year lease on a piece of equipment than you would for the same exact piece on a one-year lease.
Your credit score, or that of your business, will have a significant impact on the medical equipment lease rates that you pay. If your credit score is low, expect to have a higher interest rate and therefore higher monthly payments.
What Is Included
The price you pay and when you pay that amount will also depend on how the company accounts for factors such as installation, shipping, and training. Some companies simply work these fees into your monthly lease payments and do not require any down payment; this will obviously lead to higher monthly payments.
By contrast, some companies require down payments to cover those factors, as well as a security deposit. These companies may also require you to pay the first and last month’s lease upfront. In this case, you can expect slightly lower monthly lease fees.
Buy Out Options
Depending on the leasing company, you can also choose a contract that gives you the option to purchase the equipment at the end of the lease. In this case, expect to pay an additional fee at some point. This fee may come as a nominal monthly fee, for this privilege. After all, you would be paying off the entire equipment in this case rather than just its depreciation.
Other Variations in Medical Equipment Lease Rates to Know
Before leasing medical equipment, you should also know that the following options may be available.
This type of payment plan does not require a payment until you have already used the equipment for a set amount of time. The standard for the first deferred payment is 90 days, but you may find options up to 12 months
You may also find step-down payments which decrease over time.
Ready to Lease Medical Equipment?
When you are ready to lease medical equipment, you will find it easy to swap the equipment out for the latest units in a few years. Remember that the price depends on the retail value of the equipment, your credit score, and the lease length. You may be interested in Gym Equipment leasing.