Equipment managment: maximize ROI

Q. Should I buy or rent my equipment?
 - 
Tuesday, October 30, 2018

 A. The decision between buying or renting equipment has challenged business owners for years. The question most business leaders ask is “Do I have the right systems and processes in place to get a good ROI on what I purchase?” Here are the areas you need to focus on to get the best ROI on your equipment:
Negotiate price, warranty and financing
Think about the total offer from the beginning.  Manufacturers have many levers to pull to keep your business; be a smart purchaser. Purchasing at the end of the month or quarter may put you in a better negotiating position.
Establish good equipment management processes
Just like your car, money spent on preventative services can keep assets earning you revenue for longer. Utilize your fleet service data to make good decisions on where service dollar thresholds should be set. Sometimes a few more dollars on service will save you thousands on new purchases.
Set high expectations for fleet utilization
Excess inventory is a sign of inefficient processes. Utilize partners that offer faster turnaround times that keep your devices on patients. It will save you from buying or renting additional devices that are not needed.
Maximize revenue of assets
The assets you purchase have revenue opportunities outside the patients you serve. Other care areas, such as skilled nursing facilities, have varying equipment needs that can turn into revenue opportunities for your assets. Don’t miss opportunities to get additional revenue on your underutilized assets. hme
Will Ross is vice president of marketing at Quality Medical. He can be reached at wross@qualitymedicalsouth.com.