Leasing model for single specialty Hospitals

You have an idea, you have expertise and experience, and you have a team and confidence to run a successful #healthcare organization. And that is also true, no one knows the healthcare business better than you. But, what stops you is the availability of funds to invest and the major hurdle is the cost of facilities and equipment. This is where the #doctor entrepreneurs should opt for the leasing model. The #leasing_model is not only available for building and infrastructure, but now you can also take costly equipment and machines on lease. 

Leasing facilities and equipment model not only reduces your capital expenditure but also keeps your financial resources remain optimally available for your core activities like hiring doctors of good repute, marketing activities, quality improvement, etc.

Leasing infrastructure and facility give you multiple options of location and type of facility. You may go for shell and construct a hospital according to your needs and taste. Or you may go for leasing out a running hospital. This has an additional advantage of saving costs on construction and you don’t have to apply and wait for multiple licenses like pollution control, #PCPNDT, #AERB, #firesafety, medical store, etc. 

 The maintenance of the costly equipment and its parts is significant. So if the machine fails or needs some maintenance, the cost of completing such repair remains with the vendor. They can even replace the equipment for that time of repair, so you can continue work and you don’t lose your patients.

 You also have the option to purchase the equipment, depending on the availability of funds, which gives you the ownership of the equipment or you may upgrade the equipment with the same vendor. 

 Some factors which need to be considered before leasing any medical equipment are

1.    Ensure the strict Maintenance schedule mentioned in the contract. This will reduce the downtimes and will ensure the best condition and reliable and accurate results.

2.   The vendor should have trained and expert technical personnel who may advise the best equipment as per the need of the hospital and also, helps in quicker recovery, in case of breakdown.

3.   The vendor should arrange a training program for the staff in handling and maintenance of the equipment. 

4.   Option to substitute outdated technology with new and updated technology.

5.   Compare with the loan options. #equipmentfinance is usually self-secured and collateral free and is available at a very nominal rate of interest.

 The global healthcare equipment leasing market is expected to reach $59.8 billion by 2027. Medical equipment and infrastructure leasing is a strategic decision that enables facilities to reduce up-front costs and gives flexibility in terms of choice of location and easily navigate regular equipment upgrades and also helps in scaling the business at a faster pace.

Dr (Maj) Pankaj N Surange

MD & CEO, IPSC; Pain and Spine Hospitals


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