Equipment finance

Three structures

Fair-market-value lease

The lowest payment. At the end of the term you can return the equipment, extend month to month, or buy it at its fair market value then. Most hospitals choose this for monitors and ventilators, which they expect to replace.

$1-out lease

Higher payments, and the equipment is yours for one dollar at the end. Suits beds and other equipment with a long useful life that you intend to keep.

Equipment loan

The hospital owns the equipment from day one and we take a security interest. Some hospitals prefer it for tax-exempt bond covenant or reimbursement reasons; your auditors will have a view.

What can be included

Equipment from any manufacturer, plus delivery, installation, training, interfaces, extended warranties and service contracts, up to 25 percent of the equipment cost in soft costs. Equipment already installed can be refinanced within 120 days of delivery.

Payment schedules

Monthly or quarterly in advance or in arrears, step-up schedules for new units that will take time to fill, and seasonal schedules that are lighter in the first quarter. The total cost is shown for each so that you can compare them.

Accounting

We provide the information your auditors need to classify each schedule under the lease accounting standard you report under, including the rate implicit in the lease. We do not give accounting advice.