The medical equipment rental market has been forecast to reach a value of US$56.8 billion by 2018, driven by rapid technological obsolesce, need for frequent and expensive upgrades, limited budgets and growing pressure to reduce healthcare expenditure.
The healthcare industry worldwide is growing, fuelled by demographic factors such as increased life-expectancy, the aging population, rising incidences of chronic diseases, escalating national healthcare spending and expansion of private healthcare.
Over the past five years, the number of sophisticated diagnostic tests that require technologically advanced equipment at hospitals and medical centers has kept demand steady for rented equipment rather than outright purchases.
Public and private healthcare organisations are under constant pressure to keep pace with the advancements in medical technology, and offer patients optimum treatment and care despite budget cutbacks. New equipment purchase involves high upfront costs, while rapid technology developments shorten the technology life-cycle (TLC) requiring frequent and expensive upgrades.
With the productive life cycle of medical equipment becoming lesser than its operational life, medical equipment rental and leasing services provide strong financial benefits.
Limited budgets of hospitals, healthcare practitioners, physicians, clinics, nursing facilities, diagnostics laboratories and blood banks, is also providing opportunities for growth in the market.
Medical equipment rentals, in this regard, enable healthcare facilities to access new technologies in times of need for a fee thereby reducing the pressure on capital funds.
Limited budgets are creating the need for alternate financing options for healthcare devices and equipment among public and private medical institutions.
In developing countries like China, India, Turkey and Russia, governments are undertaking ambitious goals to cost effectively overhaul and develop national healthcare infrastructure. All of these factors are expected to fuel growth in the medical equipment rental market.
Rental services are witnessing rapid growth largely because "leases" are easier to secure than loans, and offer a host of taxation and pecuniary benefits. Small healthcare facilities, homecare and hospice are forecast to emerge into robust end-users of leasing services.
For more information on the medical equipment rental market, see the latest research: Medical Equipment Rental Market
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