Choice of routes for economic motoring.
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As consumers continue to demand the most advanced technology at the lowest cost, healthcare organizations are turning to leasing as a way of acquiring equipment with a minimum amount of capital investment. Institutions considering leasing should determine their balance sheet constraints, compare the relative costs of debt financing and leasing, and assess the residual value of the equipment at the end of its use. Comparing potential lessors requires careful analysis of rate structures and the capability of the companies to commit to a contract promptly.
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A primary responsibility of the laboratory manager is to obtain analytical instrumentation for his or her facility. Traditionally, analyzers are purchased as capital investments. An increasingly popular alternative is the reagent lease/rental agreement. A manufacturer provides a laboratory with an analyzer with the provision that the laboratory will purchase the reagents from the manufacturer. Reagents are purchased at a set cost per test, which varies with test volume, and this price incorporates a charge for the use of the instrument. The laboratory manager can acquire a state-of-the-art analyzer more quickly and easily than through a purchase and can maintain the flexibility to switch to a more suitable system as technology and service requirements change. Significant advantages and disadvantages accrue to both the laboratory and the manufacturer. The reagent lease/rental agreement is an option definitely worth considering by laboratory managers.
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The successful medical practice of the future will continually search for growth strategies. This writer believes the location of a primary care medical clinic in a retail shopping mall, with a full menu of primary services, is one strategy for growth. It is an effective method of health care delivery to a community.
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Leasing is a legitimate and convenient source of capital when a hospital needs new equipment. It has grown in popularity because it gives the manager flexibility and seems to reduce the risk of obsolescence. The authors evaluate the benefits and the risks of leasing, and give several concrete examples of the costs of leasing versus borrowing. They suggest that some of the "advantages" of leasing may be more costly than the hospital can afford.
This regulation establishes criteria and procedures for payment for new and used durable medical equipment for beneficiaries under Part B (Supplementary Medical Insurance) of the Medicare program. It implements Section 16 of the Medicare-Medicaid Anti-Fraud and Abuse Amendments of 1977 (P.L. 95-142). Section 16 provides of purchase of durable medical equipment when purchase is less costly or more practical than rental, and authorizes the Secretary to take necessary administrative steps to encourage the availability of this equipment to beneficiaries on a lease-purchase basis. The purpose is to reduce program costs caused by long and costly rentals of equipment and reduce beneficiary expenses for annual deductibles and coinsurance for unnecessarily long rentals.
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