We sat down with Ralph Tomei and Ernie Morales of Key Equipment Finance’s Commercial Vendor Group to talk about the current trends in financing healthcare equipment. Here’s what they had to say.
What are you seeing in the healthcare industry?
There has been some consolidation within the industry and we expect customers to be getting reoriented with which companies are out there and what their offerings are. There's a lot of talk about supply chain challenges and the impact the pandemic has had on healthcare overall.
How has the pandemic impacted financing healthcare equipment?
We’re living in unusual times right now and how that end user is going to pay for equipment has become a much bigger factor now than it has been in the past. We’re in the throes of a global pandemic that brought on massive supply chain issues. Because of the pandemic, healthcare has been hit as hard as any industry has, and there’s never been so much uncertainty. That end user customer is now faced with needing this new equipment and upgrades to serve patients, and they may not want to make a large capital outlay right now. At Key Equipment Finance, we can put payment plans together that help them gently absorb the financial impact of that new, upgraded technology.
What payment options does Key Equipment Finance offer?
Key Equipment offers a variety of payment plans, structures and terms tailored to meet our customers’ needs. Vendors can increase their transaction sizes and margins by bundling software, installation and maintenance into one contract with fixed payments. We can also offer a deferral if budgets open up at a certain time of year.
What makes Key Equipment Finance unique?
We will finance the entire project. We can bundle different components of the project into one monthly payment. Historically, customers may have been handling several invoices tied to a specific piece of equipment - the machine itself, the software, the cost of construction - and we can bundle all of that into one payment. We can even finance the buildout to get a specific room or area remodeled to fit the new equipment.
Is now a good time to finance healthcare equipment?
Yes. With the ongoing supply chain challenges we are experiencing, if you’re looking to acquire equipment and that equipment is available, get it. If your manufacturer has it now, they may not have it next month. Additionally, rates are still relatively low, but as inflation increases, rates could also increase. If you finance equipment with Key Equipment Finance, your rates are locked in for the entire contract.
How can people contact you?
If you’d like to talk about equipment financing, you can connect directly with them on LinkedIn:
Ralph Tomei, Vice President, Commercial Vendor
Ernie Morales, Program Manager, Commercial Vendor