Medical Equipment Rental and Leasing: A Global Strategic Business Report
San Jose, California (PRWEB) April 27, 2012
Follow us on LinkedIn – The dynamic changes in the medical equipment industry lead to regular and frequent upgradation of technology, resulting in the emergence of expensive medical equipment, particularly imaging equipment. With unpredictable economic conditions faced by the healthcare industry, more and more healthcare service and equipment providers are turning to leasing of medical equipment and devices. Rental and leasing of medical devices is fast catching up in the healthcare sector, repelling the traditional loan and credit purchase system. Rental and leasing of medical equipment is an affordable and quick solution for hospitals, blood banks, reference laboratories, nursing homes, physician offices, and clinics that are constrained by tightened budgets. The medical equipment leasing for hospitals and clinics provides tax benefits, coupled with conserving cash flow. The commonly leased medical equipment includes X-Ray machines, Ultrasound systems, Patient monitoring equipment, and laboratory equipment.
The economic downturn has severely affected capital budgets of various healthcare centers and hospitals, where the need for acquiring new equipment continues to provide better patient care and survive competition. As a result, several hospitals began adopting operating lease agreements in a bid to put any such acquisitions out of balance sheets. Operating leases enable cash-strapped hospitals and healthcare centers to acquire new equipment, without the need to wait for the time when capital budgets would be substantial enough to make such purchases. In addition to the renewed interest in operating leases, more and more customers showed inclination towards product bundling during the recession. Hospitals began purchasing all aspects of a system, including equipment, software, financing and services from one single source. This not only raises efficiency of the hospitals but also reduces costs. Hospitals sought lesser leasing agreements with larger bundles, even as they showed continued inclination towards diversifying financing sources.
The medical equipment leasing represents a complex market globally, and market penetration varies region-wise. Europe represents the single largest regional market for medical equipment rental and leasing worldwide, as stated by the new market research report on Medical Equipment Rental and Leasing. Leasing is growing as the most preferred alternative method for financing medical technology in countries such as France, Germany, and the UK, due to the budgetary constraints faced by most of the hospitals in Europe. Additionally, the West European region has been witnessing an increase in the incidences of chronic diseases as well as an increasing aging population. These patients are required to regularly monitor various vital parameters for managing their health, thereby creating a demand for patient monitoring devices over the recent years. As such, demand for such equipment rose in hospitals as well as in homecare settings, providing ample market opportunities for the medical equipment leasing industry.
On the other hand, emerging markets in the Asia-Pacific region, such as India, show a nascent market for medical equipment leasing. Medical equipment leasing accounts for about 2% of the medical equipment market in China, which is estimated at tens of billion dollars. This signifies a significantly lower penetration of leased equipment in the market and simultaneously a great potential that Chinese equipment market has to offer for leasing. Meanwhile, the US medical equipment leasing market witnessed significant growth over the recent years, and is presently characterized by about 35% to 40% of medical equipment in the US market being leased. With close to three-fourth of businesses in the US leasing some of their equipment, the medical equipment-leasing sector remained relatively steady, despite the onslaught of global economic downturn.
Major players profiled in the report include Access Equipment Leasing, Agfa Finance Group, Baxter Credit and Leasing Services, Direct Capital Corp., Elekta Group (Sweden), GE Healthcare Financial Services, Hill-Rom Holdings Inc., IBJ Leasing Company Ltd., IBM Global Financing, National Technology Leasing Corp., Olympus America Inc., Philips Medical Capital, Prudential Leasing Inc., Resource Diversified Services Inc., Siemens Financial Services, Stryker Corp., among others.
The research report titled “Medical Equipment Rental and Leasing: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of the Medical Equipment Rental and Leasing markets, current market trends, key growth drivers, an insight into the global leasing industry, recent industry activity, and profiles of major/niche global as well as regional market participants. The report provides annual sales estimates and projections for Medical Equipment Rental and Leasing market for the years 2009 through 2017 for the following geographic markets - US, Japan, Europe, and Rest of World. Also, a six-year (2003-2008) historic analysis is provided for additional perspective.
For more details about this comprehensive market research report, please visit –
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