Equipment Financing for Medical Practices
That ultrasound system costs $85,000 but would eliminate referrals and generate $8,000 monthly in new revenue. Medical equipment financing preserves the working capital you need for operations while building diagnostic and treatment capabilities that drive practice growth.
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Medical Equipment Economics
Medical equipment represents one of the largest capital investments in healthcare. Smart equipment decisions directly impact patient care, revenue generation, and competitive positioning.
Revenue Generation Impact
In-house diagnostic equipment eliminates referral leakage. A practice referring out $15,000 monthly in imaging could capture that revenue with owned equipment. Financing costs often represent 20-30% of new revenue generated.
Equipment Cost Spectrum
Medical equipment ranges from $5,000 exam tables to $3M MRI systems. Mid-range diagnostic equipment like ultrasound ($50K-$150K) and digital X-ray ($75K-$200K) offers accessible entry points for many practices.
Refurbished Equipment Value
Quality refurbished medical equipment typically costs 40-60% of new pricing with proper warranties. Financing is available for both new and certified refurbished systems from reputable dealers.
Section 179 Benefits
Medical equipment purchases may qualify for Section 179 deduction, allowing full cost deduction in the purchase year (up to limits). Financed equipment qualifies. Consult your accountant for specific guidance.
The Medical Equipment Investment Challenge
Healthcare equipment decisions balance patient care needs, revenue potential, and capital constraints. Financing unlocks options that cash purchase cannot.
Cash vs. Equipment Needs
Purchasing a $150,000 imaging system outright depletes working capital needed for payroll, supplies, and operations. But patients expect modern diagnostic capabilities.
Referral Revenue Leakage
Every referral out for imaging or testing is revenue leaving your practice. Bringing services in-house requires equipment investment.
Technology Obsolescence
Medical technology advances rapidly. Equipment purchased outright becomes harder to upgrade. Financing provides flexibility to stay current.
Reimbursement Rate Alignment
Equipment costs must align with reimbursement rates. A $200,000 system generating $3,000 monthly in reimbursements has different economics than one generating $15,000.
Multiple Equipment Needs
Practices often need several pieces of equipment. Financing each preserves capital better than attempting to purchase everything outright.
Replacement Planning
Aging equipment requires replacement. Financing new equipment while disposing of old maintains service capability without capital disruption.
Medical Equipment Financing Process
From application to equipment installation, most financing completes within two weeks.
Application
Complete online application with practice information and equipment details. Provide vendor quote or specifications.
10 minutes
Credit Decision
We evaluate practice financials, equipment value, and deal structure. Most decisions within 24-72 hours.
1-3 days
Documentation
Sign financing agreement and provide equipment invoice from your vendor.
Same day
Funding & Installation
Funds released to vendor. Coordinate equipment delivery and installation.
1-3 days
Finance Equipment, Preserve Working Capital
Medical equipment financing structures payments around equipment revenue generation and useful life while keeping working capital available for practice operations. The equipment itself secures the financing.
100% Financing Available
Finance the full equipment cost including installation and accessories for qualified practices. No large down payment required on most transactions.
Extended Terms
Terms up to 84 months for major equipment spread payments across useful life. Manageable payments that equipment revenue can support.
Equipment as Collateral
The medical equipment secures the financing. No need to pledge real estate or other practice assets.
New and Refurbished
Finance brand new equipment from manufacturers or certified refurbished systems from reputable dealers. Terms may vary by equipment age.
Fast Approvals
Equipment opportunities have deadlines. Get approval in 24-72 hours, not weeks. Move fast on good deals.
Tax Benefits
Financed equipment may qualify for Section 179 deduction and depreciation benefits. Consult your accountant for specific guidance.
Medical Equipment Financing Scenarios
Common situations where equipment financing helps medical practices.
Diagnostic Imaging
Ultrasound, X-ray, CT, or MRI systems. Bring imaging in-house to capture referral revenue and improve patient convenience.
Typical funding: $50K-$500K
Treatment Equipment
Laser systems, physical therapy equipment, surgical instruments, and specialty treatment devices.
Typical funding: $25K-$300K
Practice Technology
EHR hardware, practice management systems, patient engagement kiosks, and telehealth infrastructure.
Typical funding: $15K-$100K
Lab Equipment
In-house laboratory systems for CLIA-waived or moderate complexity testing. Generate lab revenue instead of referring.
Typical funding: $25K-$150K
Exam Room Packages
Complete exam room buildout: tables, lights, diagnostic instruments, and furniture for expansion.
Typical funding: $10K-$50K per room
Specialty Equipment
Cardiology monitors, ophthalmology devices, dental equipment, dermatology lasers, and specialty-specific systems.
Typical funding: $30K-$400K
Equipment Financing vs. Alternatives
Understanding your options for acquiring medical equipment.
| Feature | Equipment Financing | Cash Purchase | Operating Lease |
|---|---|---|---|
| Cash Required | 0-10% down | 100% | First payment |
| Ownership | At term end | Immediate | Return or buyout |
| Working Capital Impact | Preserved | Depleted | Preserved |
| Tax Treatment | Sec 179 + Interest | Sec 179 | Operating expense |
| Build Equity | ✓ | ✓ | Depends on terms |
| Upgrade Flexibility | Trade-in | Sell | Return |
| Total Cost | Moderate (interest) | Lowest | Often higher |
| Best For | Long-term ownership | Strong cash position | Rapid technology change |
Medical Equipment Financing Requirements
Equipment financing often has flexible requirements because the equipment provides collateral.
Practice History
Established medical practice with operating history and patient volume.
1+ year preferred
Personal Credit
Physician credit reviewed as part of decision. Higher scores access better rates.
650+ for best terms
Practice Revenue
Revenue sufficient to support payment amounts. Equipment cost relative to revenue is evaluated.
Supports payment level
Equipment Type
Standard medical equipment from recognized manufacturers. Custom or unusual equipment may have different requirements.
Mainstream equipment
Down Payment
Zero down available for strong credits. 10-20% may be required for newer practices or credit challenges.
0-20% depending
Equipment Source
Manufacturers, authorized dealers, and established refurbishment companies preferred.
Reputable vendors
Medical equipment financing decisions weight equipment value and practice strength. Strong practices often qualify for favorable terms.
Real Results
Dr. Michael P.
Family Medicine Practice, Tampa FL
The Challenge
Michael's practice was referring out approximately $12,000 monthly in ultrasound imaging. A quality refurbished GE ultrasound cost $65,000 but would let him capture this revenue. His working capital was committed to a new provider's credentialing period.
The Solution
We structured a 60-month equipment loan for $65,000 with zero down payment. Monthly payment of $1,350 was easily covered by the $12,000 monthly imaging revenue the equipment would generate.
The Result
Ultrasound installed within two weeks. In-house imaging began immediately, capturing previously referred revenue. Equipment generated 9x its monthly payment in new revenue from month one. Michael expanded to a second imaging device within 18 months.
“I was sending $12,000 a month out the door for imaging I could do myself. The equipment pays for itself many times over. Financing let me capture that revenue without depleting working capital.”
Medical Equipment Market Data
Industry statistics informing equipment investment decisions.
Medical Equipment Financing Advantages
Strategic benefits beyond simple cash preservation.
Revenue Generation
Diagnostic equipment creates new revenue streams. Finance payments often represent a fraction of new revenue generated.
Patient Retention
In-house services keep patients in your practice rather than referring elsewhere. Convenience improves patient satisfaction.
Competitive Positioning
Modern equipment attracts patients and referring physicians. Stay competitive with practices offering comprehensive services.
Predictable Budgeting
Fixed monthly payments replace large capital outlays. Budget with certainty for equipment costs.
Technology Currency
Financing makes it practical to upgrade equipment more frequently. Stay current with advancing medical technology.
Trade-In Path
Equipment equity can fund upgrades. Trade in older financed equipment toward newer technology.