Adding On A New Specialty To Your Surgery Center
Most ASC Administrators are always looking to maximize profitability out of their existing ASCs, and adding on a new specialty is one of the frequent ways to use downtime in the OR to generate new revenue. The main downside, however, is usually the added cost that comes with bringing on the specialty. New medical procedures usually require additional equipment needs that can add up quickly making ROI more difficult or take some time.
For example. Let’s say you would like to bring on a Pain Management specialist you would need the following:
- Surgical C-Arm ($30,000 Older Refurb – $120,000 New GE)
- C-Arm Table ($6,500 – $15,000 depending on movements and style)
- RF Generator ($15,000 – $40,000)
Total Value: $51,500 – $175,000
This cost is assuming that you already have a crash cart, patient monitor, and mayo stand on hand already (which builds out a basic Pain setup).
Now a $50-175K investment is quite an investment to make on a specialty that “might”bring in the caseload you have been promised. Here is where you can reduce risk and save money with a Rental.
A rental you ask? Yep. Rentals are not just for when equipment is broken. With a rental, you can TEST your new specialty prior to making a large capital investment. For a fraction of the cost, you can acquire the equipment you need to bring on the new specialty, all the while saving capital that can be put to work in other aspects of your business. The rental also allows you to test out caseload and profitability prior to committing to purchase or being locked in a long-term lease. In addition, a rental also allows you to test out different makes and models of equipment to find out if it will meet your specific needs prior to committing to ownership. In today’s medical device space, the access to free demos isn’t what it use to be. So using a rental to try out your equipment needs with a specific make and model can be an added benefit.
Not only will the rental help reduce out of pocket costs, but it will also allow you to have flexibility in the event the specialty isn’t working out. Say for example the promised caseload and actual caseload are very different, and there simply isn’t the patient volume to sustain the operating costs. With a rental, you can cancel the rental, return the equipment and move on. With an equipment lease, you’re stuck with the equipment for the term of the lease or have to worry about finding another buyer for the equipment, which can be time-consuming and still cost you money (in the event the equipment sells for less than owed).
Rentals offer fixed operating costs. Often times when purchasing equipment, it includes a limited warranty. Once this warranty expires any repair costs are at your own expense. Mix the cost of repairs in with the costs of maintenance that’s required to keep the systems healthy and within regulation and you have a variable cost that’s more difficult to budget for. With a medical device rental from Rentals MD, the monthly rental fee includes all repairs and maintenance at no additional costs. This allows you to use the monthly rental fee as a fixed operating cost for your yearly budget, and never have to worry about spending more than that.
Lastly, our rental programs all have a built-in rent-to-own option. This option allows you to build equity in your rental. Rentals MD allows you to apply 50% of each months rental towards the purchase of the rental system or a system of equal or greater value. This allows you keep costs low when starting the new specialty, but when volumes and profitability hit the point where it makes sense to purchase the equipment you now have equity that you can use as large downpayment on the purchase of the existing system or an upgraded model.
To recap, when adding on a new specialty to your ASC, you can save time, money and reduce risk with a medical equipment rental from Rentals MD.
- Low Start-Up Costs
- Try Equipment Prior To Purchasing
- Fixed Operating Costs
- Equity In Your Rental (Rent-To-Own)
For more information on how we can help, please reach out to us at (833) 838-8381 or REQUEST ADDITIONAL INFO