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.
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.
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
Purchase Price: $385,000
Depreciation (5 years): ~$77,000/year
Annual Maintenance Costs: $12,000
Capital Impact: Large upfront cost
Tax Benefit: Section 179 depreciation
Monthly Payment: $6,950
Term: 60 months
Total Lease Cost: $417,000
Upfront Cost: $0
Tax Benefit: Lease payments fully deductible as operating expenses
Maintenance Included: Yes
| 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 |
✅ 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.
After leasing the new CT scanner:
Patient intake increased 39% within 6 months
Referral partnerships grew by 2x
Gross revenue rose by 28% YoY
Lease was paid off early in Month 55 due to increased revenue flow
Related: Equipment Leasing for Medical Practices: Diagnostic & Treatment Equipment
Buying offered ownership and depreciation—but required a huge upfront cost
Leasing offered speed, flexibility, and preserved capital
The clinic scaled faster and increased revenue using a lease strategy
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.
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.