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Case Study: Leasing vs. Buying Medical Equipment—A Cost Analysis
For healthcare providers, access to the latest medical technology can enhance patient care, improve outcomes, and grow profitability. But the big question remains: should you lease or buy your medical equipment? This real-world case study compares both options and highlights how equipment leasing helped one clinic make the smarter financial move.
✅ Featured Snippet Answer:
Is it better to lease or buy medical equipment?
Leasing offers lower upfront costs, easier upgrades, and cash flow flexibility—making it ideal for clinics with limited capital or evolving needs.
The Practice: Renew Diagnostics
Type: Independent Imaging & Diagnostic Center
Location: Tampa, FL
Challenge: Upgrade their aging CT scanner
Equipment Needed: 128-slice CT scanner
Buy Price: $385,000
Lease Quote: $6,950/month for 60 months with a $1 buyout
The Financial Decision: Lease vs. Buy Breakdown
✅ Option 1: Buying Outright
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Purchase Price: $385,000
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Depreciation (5 years): ~$77,000/year
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Annual Maintenance Costs: $12,000
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Capital Impact: Large upfront cost
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Tax Benefit: Section 179 depreciation
✅ Option 2: Leasing the Equipment
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Monthly Payment: $6,950
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Term: 60 months
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Total Lease Cost: $417,000
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Upfront Cost: $0
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Tax Benefit: Lease payments fully deductible as operating expenses
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Maintenance Included: Yes
💰 Total 5-Year Cost Comparison
| Expense | Buying Outright | Leasing Over 5 Years |
|---|---|---|
| Upfront Capital | $385,000 | $0 |
| Maintenance | $60,000 | Included |
| Depreciation Benefit | -$385,000 | N/A |
| Total Spent (Net) | ~$345,000 (after tax benefit) | $417,000 (pre-tax) |
| Cash Flow Flexibility | Low | High |
Strategic Benefits of Leasing in This Case
✅ No capital outlay meant the clinic could allocate funds to marketing and patient acquisition.
✅ Faster access to new tech without delays in loan approvals.
✅ Predictable payments allowed accurate budgeting.
✅ Tax deductions for every lease payment boosted net savings.
✅ Built-in maintenance minimized downtime and repairs.
Outcome: Strong ROI and Operational Growth
After leasing the new CT scanner:
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Patient intake increased 39% within 6 months
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Referral partnerships grew by 2x
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Gross revenue rose by 28% YoY
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Lease was paid off early in Month 55 due to increased revenue flow
Related: Equipment Leasing for Medical Practices: Diagnostic & Treatment Equipment
Summary: Leasing vs. Buying Medical Equipment—What Worked Best?
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Buying offered ownership and depreciation—but required a huge upfront cost
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Leasing offered speed, flexibility, and preserved capital
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The clinic scaled faster and increased revenue using a lease strategy
Final Thoughts: Make the Smart Investment for Your Practice
When cash flow, agility, and rapid growth matter, leasing medical equipment can be the smarter choice—even if total costs are slightly higher. In Renew Diagnostics’ case, the ability to act fast and scale outweighed the long-term price tag.
Take Action: Compare Lease vs. Buy for Your Practice Today
Need to upgrade your medical imaging, diagnostics, or treatment equipment?
Run your own lease vs. buy analysis and speak with a healthcare equipment finance provider to find the right path for your practice’s future.
