Dive Brief:
- With capital budgets spread thin, hospitals are taking a closer look at flexible equipment financing.
- According to Richard Gundling, vice president of healthcare financial practices at the Healthcare Financial Management Association, benefits of flexible equipment financing include limited or no cash upfront, easier access to up-to-date technology, and the ability to match payments to revenue.
- Gundling suggests that reasons for flexible equipment financing include when they need immediate access to new equipment and technology, want to conserve cash and need to eliminate the risk of owning obsolete assets.
Dive Insight:
Hospitals are in something of a pickle these days when it comes to capital investment. They may need new CT scanners or other medical equipment, but are being forced to direct all their budget to IT, particularly EMR costs. Given that this is likely to remain the situation for years, it's possible that flexible equipment financing is the way to go for hospitals that need to upgrade non-IT equipment.