Does It Make More Sense to Rent or Buy Equipment? Chances are, you have rental equipment in your facility. There's a lot about renting that makes sense. You can make set monthly payments and you can always return the equipment if you no longer need it. On the other hand, have you ever stopped to calculate whether you've made so many payments on a piece of rental equipment that you've actually paid more than its purchase price? In many instances, it makes more sense to purchase a piece of equipment than pay more than it is worth in rental fees. The following calculation can help you determine a piece's "break-even point," or the point at which it makes more sense to purchase than rent. Step 1: Identify all of the rental equipment that you have in the building (common examples include concentrators, powered mattresses, beds, bariatric equipment, lifts, scales and specialty wheelchairs). Step 2: Determine the monthly rental cost of each piece of resident-specific equipment. Step 3: Multiply the monthly rental cost by the estimated length of the resident’s stay. Step 4: Subtract the cost of purchasing the equipment. If this calculation gives you a positive number, it makes sense to purchase the equipment! Here's an example using a low air loss mattress. | |||
Rental cost | $150/month | ||
Estimated stay | 6 months | ||
Total rental cost | $900 | ||
Purchase price of mattress | $789 | ||
Difference | $111 | ||
Purchasing the low air loss mattress would save the facility $111 (or more, if the resident's stay was extended). The break-even point in this example is 5.26 months. Since that is less than the resident's estimated stay, it makes sense to purchase the mattress! Professional Medical's highly trained team of territory managers is ready to help you evaluate your facility's equipment needs and determine whether renting or purchasing is the right option for you. We also regularly feature limited-time pricing in Mr. B's Equipment Specials. To receive this e-newsletter, click the link above. To learn more, give us a call at (800) 648-5190 or visit us online at promedsupply.com. |
recently added to the site. This month, we'll be paying special attention to staffing requirements. Click on the link above to register for the March 21 webinar, which will be held from 8-9 a.m. CST. |
Good Friday/Easter Closure Notice Professional Medical will be closed on Friday, March 29 in honor of Good Friday/Easter. Orders that are placed by noon on Monday, March 25 will be delivered by Thursday, March 28. We invite you to call our Customer Care team at (800) 648-5190 with any questions or concerns. |
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