Leasing medical devices and technology can be a great way to raise a hospital’s bottom-line while also keeping its equipment up to date. By improving in finance and maintaining quality equipment, an organization can reinforce their value analysis and supply chain efforts. Over the past several years, leasing has become increasingly popular amongst hospitals as the benefits become clearer. According to a summary of the Global Healthcare Equipment Leasing Market 2017-2021 report on the Research and Markets website, a primary reason hospitals are trending towards leasing is the rising cost of medical devices. In his article about the leasing market, Sameer Joshi states “The analysts forecast the global healthcare equipment leasing market to grow at a CAGR of 6.77% during the period 2017-2021” (Joshi, 2018).

All the growth within the market might prompt hospital leadership to ask why it is occurring and what specifically makes hospitals choose to lease; they choose to switch because leasing has many advantages that can make it preferable to the standard buying process.


1. Flexibility

Since organizations grow and transform over time, leases are a great opportunity as they offer flexibility by allowing hospitals to add or update technology depending on the terms of the contract (Myers, 2018).

2. Continually Upgraded Technology

Leasing equipment means the hospital is not necessarily tied to a contract. An organization can freely replace the old technology without the headache of selling an expensive device (Myers, 2018).

3. Multiple Options at the End of Contract

The organization can choose between returning the leased equipment, purchasing it, or extending the contract (Daugherty, 2011). Essentially, the hospital can choose whatever works best for them.

4. Tax Benefits

Leasing can lead to lower monthly payments when compared to a loan. Many experts consider the tax return for leased equipment to be easier than a loan (Daugherty, 2011). 

5. No Large One Time Payments

The organization could cut costs and avoid large one time payments which will help to improve value analysis and supply chain processes.


Leasing hospitals’ medical equipment and technologies could help to solve some organizational issues. For hospitals trying to manage the rising cost of medical devices while maintaining quality care, leasing could alleviate the burden of having outdated equipment and it could be more fiscally responsible than a large one time payment. The option of leasing offers significantly greater flexibility through end of term options as well as having lower payments than a loan. By using the methods described in this article, Value Analysis Committees and Supply Chain Departments can improve the safety level for their patients, raise their bottom-line, and make the right choices for their organizations.

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Daugherty, S. (2011, July 25). 12 Benefits of Leasing Equipment. Retrieved from https://www.healthleadersmedia.com/finance/12-benefits-leasing-equipment.

Global Healthcare Equipment Leasing Market 2017-2021. (n.d.). Retrieved from https://www.researchandmarkets.com/research/hnmf7g/global_healthcare.

Joshi, S. (2018, March 7). Healthcare Equipment Leasing Market to grow at a CAGR of 6.77% to 2021 with uberization of medical equipment finance. Retrieved from https://industrytoday.co.uk/health_and_safety/healthcare-equipment-leasing-market-to-grow-at-a-cagr-of-6-77–to-2021-with-uberization-of-medical-equipment-finance.

Myers, M. (2018, December 20). What you need to know about medical equipment financing and leasing. Retrieved from https://www.beckershospitalreview.com/finance/what-you-need-to-know-about-medical-equipment-financing-and-leasing.html.

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