Global Healthcare Equipment Leasing Market - 2022-2029

Global Healthcare Equipment Leasing Market - 2022-2029
Market Overview

Healthcare Equipment Leasing Market size was valued US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of 9.2 % during the forecast period (2022-2029).

A lease is a legal agreement that permits a lessee or tenant to utilize a product in exchange for a monthly rental fee. In exchange, the lessor, or owner of the leased object, receives monthly payments for the duration of the lease and recoups their costs at the end of the lease. One of the many types of leases available today is healthcare equipment leasing. Unlike traditional financial products like mortgages or loans, this lease does not instantaneously transfer ownership. Similarly, many healthcare organizations put off purchasing medical devices and equipment during economic downturns and financial constraints. In these cases, healthcare institutions lease equipment from a variety of well-known companies and financial sponsors to satisfy the needs of patients and staff.

Market Dynamics

Rising companies for medical equipment lease are expected to drive market growth.

Medical Equipment Rental industry has benefited from many healthcare providers implementing cost-cutting strategies, such as renting rather than purchasing equipment prone to rapid technological change. For instance, laboratory items, including chemistry immunoassay analyzers, are typically replaced every three to five years, spurring demand for rental equipment with shorter product life cycles. Moreover, Medaco is a renowned provider of specialized healthcare equipment. For over 30 years, the company has been delivering, installing, and repairing various patient lifting and support equipment and related accessories across England and Wales. In addition, the company has provided clients with Healthcare Equipment Leasing Services, which can be of great benefit, including Care Homes, Private Hospitals & Healthcare Facilities, Hospices, and Special Needs Education Providers, as they have built a strong reputation as a reliable and trusted service provider for care establishments across the board; building dynamic partnerships and helping them to reduce costs and channel precious resources efficiently. Thus, from the above statements, the market is expected to drive in the forecast period.

Challenges associated with healthcare equipment leasing are expected to hamper the market growth.

Greater cost over time, Payment obligations and ownership are some factors the market is expected to hamper in the forecast period. For instance, Although leasing medical equipment lowers and manages the monthly or yearly payments, interest rates will cause to pay more than the equipment is worth over time. According to the Journal of Urgent Care Medicine, it is expected to pay between 3% and 15% interest during the length of the lease, depending on your credit score. As mentioned earlier, those are the challenges expected to hamper the market growth.

Industry Analysis

The healthcare equipment leasing market provides in-depth analysis of the market based on various industry factors such as porter’s five forces, supply chain analysis, reimbursement scenario, pricing analysis, etc.

COVID-19 Impact Analysis

The COVID-19 pandemic has moderately impacted healthcare systems and the market. COVID-19's impact on the medical equipment sector is particularly notable, given that it directly impacts our ability to combat the virus. The overwhelming demand for medical equipment was one of the most immediate reactions to COVID-19. Hospitals around the world were experiencing shortages of breathing equipment, testing supplies, and personal protective equipment in the early months of the epidemic. Therefore, there was increasing demand for different medical equipment for the lease. Remote patient monitoring devices, glucose monitoring devices, and insulin pumps are among the devices that have increased in demand.

Moreover, many leases giving companies have offered payment deferrals, including extensions, modifications or restructuring during Covid-19 for the companies who have taken medical equipments for lease. In contrast, the pandemic interrupts the supply chain and process. Many companies will vary to other geographic regions to ensure that products remain available and protect their supply chain. Thus, from the above statements, the market got affected, and it is expected to g.

Segment Analysis

DME segment is expected to hold the largest market share in healthcare equipment leasing market

The DME segment is expected to dominate in 2021. The segment benefits from increased demand for long-term care and personal mobility and safety devices, increased demand for home care, high medical equipment expenditures, the growing approach to minimizing healthcare expenses, and the growing handicapped population. Moreover, DME leasing firms have some advantages, including preventive maintenance, component replacement, engineer labor, uptime guarantee, and 24/7 call centers. Additionally, durable medical equipment includes iron lungs, oxygen tents, nebulizers, continuous positive airway pressure (CPAP) devices, catheters, transfer benches, hospital beds, patient lifts, transfer or stretcher chairs, and wheelchairs (DME). Renting cutting-edge, long-lasting medical equipment is a cost-effective method to keep up with rapidly changing technology. Thus, from the above statements, the market segment is expected to hold the largest market share in the forecast period.

Geographical Analysis

North America region holds the largest market share in the global healthcare equipment leasing market

In 2021, North America accounted for the highest revenue share. Rising total healthcare expenditure as medical providers meet the expanding medical needs of an aging US population; medical equipment will continue to be prone to technological change, stimulating downstream markets' demand for medical equipment rentals and development of pharmaceutical and healthcare sectors are some of the factors the marker is expected to boost in the forecast period. For instance, Alliance Funding Group (AFG) provides equipment financing to small, medium, and large businesses. AFG has provided over $2 billion in equipment leases and loans to over 25,000 customers across the United States. Moreover, Renting equipment with a short product life cycle is often less expensive. Sophisticated medical devices will likely become more important for healthcare providers as they shift from volume-based to value-based care become more prominent in the outlook period. Therefore, it has increased the demand for the Healthcare Equipment Lease. Thus, from the above statements, the North American region is expected to hold the largest market share in the forecast period.

Competitive Landscape

Major key players in the healthcare equipment leasing market are Med One Group, Univest Capital, Inc., Trust Capital, USA, Oak Leasing, Mizuho Leasing Company, Limited, Prudential Leasing Inc., Hill-Rom Services Inc., Agiliti Health, Inc.

Med One Group:

Overview:

Med One Group is one of the healthcare industry's largest independent medical equipment leasing and rental companies. With nearly 30 years in business, Med One has served over half of the nation's acute care hospitals and many other healthcare facilities with leasing, rental, sales and service solutions. They make medical equipment available with simple processes and dedicated service. Med One provides medical equipment vendors with custom and simple leasing solutions, giving them a strategic selling advantage.

Product Portfolio:

Aspect Medical Systems: The BIS brain monitoring system helps doctors calculate and deliver the appropriate amount of medication to satisfy the needs of each patient by offering insight into the direct and patient-specific effects of anesthesia on the brain. It leads to greater patient anesthetic satisfaction.

The global healthcare equipment leasing market report would provide an access to an approx. 45+market data table, 40+figures and 120pages.