Recently, we took a look at the medical equipment leasing industry with a little help from in-house expert John-Paul Smolenski. Today, we’ll see how an outside perspective confirms the cheery news we passed along back then.
Dotmed News has good news about the industry, which is booming not just by the standards of other equipment industries, but by the standard of pretty much any industry you can imagine. For the sixth year in a row, medical equipment is projected to finish the year with the greatest dollar growth in volume of any equipment industry out there.
Want some figures? Here’s some figures:
And those figures aren’t small. The U.S. Bureau of Economic Analysis estimates that businesses invested about $81.6 billion in health care equipment in the year 2010. With approximately 62 percent of all U.S. health care equipment being financed, that brings the health care equipment finance marketplace to an estimated $506 billion in 2010, according to the Bureau, as reported by the Equipment Leasing and Finance Association (ELFA).
As we noted in our last post on this topic, many medical offices are upgrading to Electronic Medical Records (EMRs), which are replacing the old paper filing systems that many doctors have used for dozens of years:
“A lot of MDs are financing their Electronic Medical Records, which is the software they need for treating patients and recording the data instead of filing everything in paperwork and storage cabinets,” Smolenski said. “Every doctor is mandated to have the software by 2014. If they don’t, they will start to be penalized for it.”
The key to all of this is the increase in lending volume—driven by companies like Direct Capital—and the recognition that cutting-edge equipment is needed. Those two go hand-in-hand, and it’s been encouraging to see just how
What’s your opinion on the state of the medical equipment industry? If you work in it, we’d love to hear your insight.
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