Leasing: is it really the answer to your financing needs?

Leasing hospital equipment may not be the best method of financing such purchases. Early reimbursement agreements offered significant financial benefits to the leasing institution in terms of increased cash flow and additional cash reimbursement dollars. However, changes in the third-party reimbursement formula have partially eliminated the financial advantages of leasing. The author discusses the effect of these changes on leasing agreements, and why hospitals still lease, and answers some of the common assertions in support of leasing.