Medical Equipment Leasing Company LeaseQ Announces 2013 Medical Excise Tax Bill "a Boon" to Its Leasing and Financing Business

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As small to mid-sized medical practices feel the pinch from the 2013 excise tax on medical equipment, many are flocking to alternative sources to help fund their acquisitions - namely equipment financing and leasing.

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Smaller medical offices, mid-sized clinics and individual medical practitioners are especially feeling the pinch as the cost of MRI machines, beds and medical devices have all increased since last year.

Equipment leasing and financing company LeaseQ announced today it is seeing a significant uptick in new leases to small and mid-sized medical groups due to the increase in medical equipment pricing brought about by the Medical Excise Tax Tax of 2013. LeaseQ stated it expects to see sustained demand for its medical leasing and financing services as a result of the 2013 tax.

For more information on medical equipment leasing with LeaseQ visit:

https://www.leaseq.com/medical-equipment-leasing

On January 1, 2013, Section 4191 of the Internal Revenue Code began imposing an excise tax on the sale of certain medical devices by the manufacturer or the importer of the device. The new tax is 2.3 percent of the sales price of the taxable medical device. In general, a taxable medical device is a device listed as such with the Food and Drug Administration under section 510(j) of the Federal Food, Drug, and Cosmetic Act and 21 CFR part 807, unless the device is exempted. Exempted items include eyeglasses, contact lenses, hearing aids, other specific retail devices and has no effect on the consumer.

Although the tax appears small at only 2.3%, it’s a significant enough increase for leasing and financing companies such as LeaseQ to see significant increases in small to medium sized medical leasing volume. Said LeaseQ CEO and Founder Vernon Tirey, "Although a 2.3% increase in medical equipment pricing may seem minimal, it’s quite a large increase for our non-institutional medical equipment customers. The manufacturers are simply rolling up the excise tax into their inside costs, therefore passing those increased costs to the end users. Smaller medical offices, mid-sized clinics and individual medical practitioners are especially feeling the pinch as the cost of MRI machines, beds and medical devices have all increased since last year. These cost increases are significant for many of these non-institutional practices - and we are seeing increased medical financing volume because of the new tax".

When a medical office is just starting out or expanding into new services, these offices need medical equipment to assist in that expansion. Medical equipment used on a daily basis must be constantly replaced and or upgraded - and with the new excise tax, the cost of purchasing that equipment just became more restrictive. To deal with the new tax, medical equipment manufacturers are simply passing along this increased cost to the end user, absorbing it into their cost of goods sold.

Medical equipment manufacturers had ample time to prepare for these changes and knew the tax was coming and planned their strategy accordingly. But because of the increase, lease and finance companies like LeaseQ are seeing intensified demand for financing instead of straight cash purchase - simply because smaller practices cannot afford the pay the increased prices for purchasing MRI machines, exam tables and CT scanners needed for their daily operations.

Leasing For Small to Mid-Sized Medical Practices Far More Economical

With the cost of medical equipment on the rise, financing that same equipment has suddenly become more attractive, especially for small to mid-sized medical clinics. The benefits of leasing significantly outweigh the benefits of making a cash purchase - as businesses are able to acquire the most technologically advanced equipment at favorable rates and terms. Not to mention the turnaround time for a lease and finance arrangement is significantly quicker than a traditional purchase and finance arrangement done through a bank or conventional lending institution. For smart medical practices looking to lease instead of purchase, LeaseQ's revolutionary One Touch Lease platform helps facilitate this process even further by offering medical institutions extremely fast approvals as well as freeing them from traditional sales tactics typically employed by many financial institutions.

With LeaseQ's One Touch Lease platform, medical practices can see in minutes which leasing rates and plans they qualify for - from the leading finance companies. Comparing rates and terms is easy as a clinic can then choose the term and rates that fit their needs and budget. In under two minutes, medical institutions and clinics can compare the rates they qualify for without any effect on their credit rating.

Since its launch in late 2012, LeaseQ has quickly become the largest online network of equipment dealers and equipment finance companies - helping medical practices and businesses of all types to quickly acquire the equipment they need at the rates and terms best suited for their needs.

Based in Woburn MA, LeaseQ is one of the leading providers of equipment leasing and financing options in the country, with options available for both small business startups as well as Fortune 500 corporations. Visit them online at LeaseQ.com.

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Vernon Tirey
LeaseQ.com
+1 (781) 346-3838
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Ralph Burns

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