Rentals: Consider adding rental business

A. Medical equipment companies are continually seeking ways to grow their business.  This is true for medical equipment distributors, as well as medical supply stores.

The addition of a rental option can be a viable and profitable avenue to diversify services and increase income.

In addition to patients who rent medical equipment, new or expanding medical facilities often lack sufficient financing to purchase durable medical equipment and diagnostic machines; thus, they provide a market to serve with equipment rentals and leasing.

Essentially there are four major criteria  that must be evaluated when considering if renting medical equipment is a path to increased profits.

Capital for sufficient equipment

Your business may presently have adequate inventory to get started. Otherwise, there are a wide variety of businesses that specialize in offering flexible financing solutions to healthcare enterprises.

Some startups have been known to acquire pre-owned, operational equipment or machines to keep costs manageable. Some network with other agencies or people who want to have their equipment rented out.

Inventory management

Tracking equipment rentals and keeping your inventory in clean and working order is vital. Another aspect requiring attention is the terms of repair and maintenance. Because you are entrusting the care and operation of your equipment to others, you need protection in case the machine malfunctions or is broken, especially if your contract says  repair and maintenance are your responsibility.

Legal and liability

A firm understanding of legal and liability exposure is critical. Make sure you have qualified legal representation and counsel in this enterprise, as well as insurance to protect your business and employees. Insurance to cover the cost of repair or replacement is essential.

Business development

To maintain and grow a medical equipment rental business, you must establish and nurture relationships with healthcare organizations, including clinics, hospitals, nursing homes, healthcare facilities and rehabilitation centers that rent medical equipment.

Jason Glass is founder/CEO of Rent It Today. Reach him at 859-815-1656 or jglass@rentittoday.com. Visit his website at www.rentittoday.com/medical-equipment-rentals.