The Global Market for Medical Equipment Rental and Leasing is Projected to Reach US$70 Billion by 2024
High Cost of New Equipment and
Protection for Technology Upgrades Drive the Global Interest in Medical
Equipment Rental and Leasing, According to a New Report by Global
Industry Analysts, Inc.
GIA
launches comprehensive analysis of industry segments, trends, growth drivers,
market share, size and demand forecasts on the global Medical Equipment Rental
and Leasing market. The global market
for Medical Equipment Rental and Leasing is projected to reach US$70 billion by
2024,
driven by increasing cost of new medical equipment, need to cost-effectively keep
abreast of latest medical equipment technologies; and focus on reducing total
cost of ownership (TCO) of capital assets.
For
healthcare facilities, obtaining efficiency gains is of utmost importance,
particularly in the current scenario where patient needs are changing continuously
and where competition in the area of services offered is intensifying. However,
since feature-rich medical equipment is most often out of reach for many a
healthcare facility, the best alternative is that of procuring equipment on
rental basis or obtaining them on lease. Not just the cash strapped smaller
healthcare facilities, but also several well-funded large facilities opt for
renting of leasing medical equipment because of the primary advantage of lower
total cost of ownership when compared to outright purchasing with the aid of
financing. Payment plans are based on hospitals’ need for
defined and sufficient pool of resources that could be used for the treatment
of specific medical conditions. An increase in the demand from patients to the
point of exceeding the number of equipment required for patient care drives the
rental equipment market. A facility without the necessary equipment to meet
patient care would be forced to decline admission of the patient or redirect
the patient somewhere else, leading to great loss of revenue. This is one of
the strongest reasons that make healthcare providers prefer rental equipment.
Medical
professionals are increasingly opting for
leasing and
renting, rather than buying expensive medical equipment outright due to the
flexible terms of payment offered by equipment leasing companies. Leasing
companies generally tailor the rent payments for each client category, taking
into account cyclical and seasonal variations in revenues of the healthcare
facility, as well as monthly patient inflows and throughput. The incentive for
leasing is greater in case of high-priced equipment, and devices such as CT scanners that are endowed with low
productive life due to frequent technological upgrades. Moreover, the lessee
retains the right of retaining or returning the equipment. Furthermore,
independent leasing companies are enabling easier equipment financing by
offering a one-stop window for all equipment as well as speeding up credit
approval, and providing equipment servicing throughout the lease period.
Leasing also aids new or fast expanding healthcare companies in offsetting high
initial expenditure for purchasing equipment. Leasing helps to amortize the
capital cost through periodic rental payments. This frees up working capital
that may be diverted to other productive areas of the organization. Besides being easier to secure when compared to asset financing or
traditional bank loans, leasing offers several definitive advantages and
foremost among which is significant tax savings over other modes of equipment
finance.
As
stated by the new market research report on Medical Equipment
Rental and Leasing Europe represents the largest market worldwide, followed closely by the
United States. The United States is forecast to witness above average growth
during the analysis period to emerge as the fastest growing market. Uncertainty
over patient throughput volumes and the need to keep up with technology
upgrades are driving healthcare providers to reallocate capital to other needs
by leasing medical equipment.
Major
players in the market include Agfa Finance Corp., De Lage Landen International
B.V., Direct Capital Corp., GE Industrial Finance, Hill-Rom Holdings Inc., IBJ
Leasing Company Ltd., National Technology Leasing Corp., Oak Leasing Limited,
Prudential Leasing, Inc., Rotech Healthcare Inc., Siemens Financial Services
GmbH, Stryker Corporation, and Universal Hospital Services Inc., 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 market trends,
growth drivers, innovations and launches, and strategic industry activities of
major companies worldwide. The report provides market estimates and projections
in US dollars for all major geographic markets including the US, Japan, Europe,
and Rest of World.
Global Industry Analysts, Inc. 6150 Hellyer Ave., San Jose CA 95138, USA,
All Rights Reserved.
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