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Q: Medical or Dental equipment leasing ( Answered 5 out of 5 stars,   1 Comment )
Subject: Medical or Dental equipment leasing
Category: Business and Money > Advertising and Marketing
Asked by: researchondemand-ga
List Price: $65.00
Posted: 29 Jun 2003 11:56 PDT
Expires: 29 Jul 2003 11:56 PDT
Question ID: 223187
Medical or Dental equipment leasing. The details needed are the 
possible revenue generated from a leasing agency. What the 
competition is and who holds a commanding lead of the market. The 
market size projections and future industry trends. Average pricing of 
leased equipment generated in the market and the growth of companies 
providing this service over a five or ten year period.

Request for Question Clarification by bobbie7-ga on 29 Jun 2003 12:37 PDT
Hi Steve,

I was working on your question for the past few days but I haven’t
been able to come up with all the information you need.

I located the following:

- What the healthcare equipment leasing industry was worth in 2002
- Average annual growth rate
- Estimated size of healthcare equipment leasing industry in 2005 
- The most active equipment category in healthcare lease financing.
- A 36 page report about the equipment leasing industry in general
2002. (Not health care specific)

Would you be interested in this information?

If you are, you could lower the price of this question accordingly so
that I can answer it with the information I mentioned above, and then
post a new question asking for the rest of the information you


Clarification of Question by researchondemand-ga on 29 Jun 2003 17:53 PDT
Okay, I'll take the information you have knowing that you always do a great job!
Subject: Re: Medical or Dental equipment leasing
Answered By: bobbie7-ga on 29 Jun 2003 19:44 PDT
Rated:5 out of 5 stars
Hello again Steve,

In response to your clarification that you wished to accept the
information that I was able to locate as an answer, I am providing the
following information to you.

What Types of Companies Lease? 

“Lessees vary widely from small, one-person operations to Fortune 100
corporations, and the kinds of equipment being leased are just as
diverse. Transactions range from a few thousand dollars worth of
equipment (such as fax machines) to multi-million dollar cogeneration
facilities, telecommunications systems, medical equipment (including
CAT scanners and MRI imaging), office systems, computers, commercial
airliners, and transportation fleets.”

“In 2002, $244 billion worth of equipment in general will be leased.

There is equipment that can be leased for virtually every industry
sector that conducts business.

Medical Equipment 

Blood Analyzers 
CT Scanners 
Exam Tables 
Dental Equipment 
Heart Monitors 
Lab Testing Equipment 
Optical Equipment 
Physical Therapy 
X-ray Equipment 

Source: Equipment Leasing Association


From the American Medical Association News in Brief:

The market growing for health care equipment leasing.

“The growth of outpatient facilities and rapid technological advances
have spurred growth in the health care equipment leasing industry, and
analysts predict the market will continue its strong performance in
the next few years, says a new report by the Equipment Leasing Assn.

Forecasts of the Arlington, Va.-based association say the market,
which was worth $5.8 billion in 2002, would grow by 8.5% a year
through 2005, when it is expected to reach $7.4 billion.”

“More than 50% of all health care lease financing in 2002 was secured
for diagnostic imaging equipment, by far the most active category of
the market, according to the report.”

American Medical Association - News in brief - Feb. 17, 2003


From an ELA Press Release Posted January 14, 2003

Rapid Technological Advances and Growth of Outpatient Facilities
Driving Healthcare Leasing Market

“Equipment leasing was reported to be a $204 billion industry in

Highlights from the report include: 

“The estimated size of the U.S. healthcare equipment leasing market in
2002 was $5.8 billion in terms of new volume. •The average annual
growth rate of market growth is forecast to be 8.5% through 2005. The
healthcare equipment leasing market is projected to reach $7.4 billion
in volume by 2005.”

“Total healthcare expenditures in the U.S. are increasing at an
accelerating rate, forecast to grow from $1.3 trillion in 2002 to more
than $1.6 trillion by 2005. This will represent a 7.2% average annual
growth rate.”

“The most active equipment category is imaging diagnostic equipment,
which accounts for just over 50% of all healthcare lease financing.”

“The continuing shift of healthcare away from hospitals to outpatient
facilities is leading to the acquisition of new equipment and expanded
use of lease financing.”

“Future healthcare equipment leasing increases will be stimulated by
technology enhancements, especially those related to digital systems

Media wishing a full copy of Healthcare Equipment Leasing, 2003: U.S.
Market Dynamics and Outlook, or to request future studies, please
contact Suzanne Jackson at 434-972-7278,
or Diane Johnson at 703-391-2056,

Full-color charts and graphics are available to the media for reprint,
free of charge.
Source: Equipment Leasing Association (ELA)


Recovery for rent: Leasing goes up as tech advances
John Snow
The Business Journal: March 2003

An aging population and sophisticated equipment that quickly becomes
obsolete are the driving forces behind a boom in medical equipment

“New medical equipment leases totaled $5.8 billion last year, a figure
expected to grow at an annual rate of 8.5 percent to $7.4 billion in
2005, said Ralph Petta, vice president of Virginia-based Equipment
Leasing Association. An older population needs an increased amount of
medical care, and the tendency among physicians is to use the latest
technology for diagnosis and treatment.”

(. . .) 

“Companies that market leased medical equipment say business has
always been good, but the recent surge has come as more doctors choose
leasing over purchasing.”

 (. . .) 

“Financing rates for equipment leases are competitive with bank loans
of similar terms, she said. Bank loans would typically carry interest
rates of 6 percent to 13 percent, while lease rates might range from 7
percent to 18 percent.”

The Business Journal: March 2003


2003 Industry Future Council Report Published by the Equipment Leasing
and Finance Foundation (26 pages)

“Many see business investment levels at their lowest point in years.
Still some, leasing companies are not just surviving, but thriving.
Members agreed that firms with a specific industry niche and or a
targeted market focus will continue to earn respectable margins:

Players in the medical equipment market project substantial growth
over the next 12 months. However, because it is one of the few growing
sectors, more players are entering the market, increasing competitive

“Some firms have adopted a targeted marketing approach, for example,
using direct telephone marketing to increase sales and reduce cost.”


Medical Equipment Leasing & Rental Services - 1999

“This industry grew rapidly during the 1980s, but slowed with
curtailed hospital spending on capital equipment. The industry has
resumed growth as the diagnostic imaging market rebounded.
Consolidation has taken place and the business is still very
competitive. Technology is moving toward smaller, less expensive MRI
units and CAT san machines, and the rental market is strong.
Competitors include "captive" lessors of large machine manufacturers
(GE, Siemens), banks, and hundreds of independent leasing companies of
all sizes.”

Citicorp Distribution Finance 
Comdisco Healthcare Group 
Copelco Capital 
DVI, Inc. (incl. old Concord Leasing profile, predecessor firm) 
FINOVA Capital Corp. (incl. former TriCon Leasing) 
GE Capital 
Newcourt LINC Financial (formerly LINC Anthem) 
Prime Capital Corp. 
Siemens Medical Systems


GE Announces New Business Focused on Healthcare Financial Services
STAMFORD, CT, June 19, 2002

“GE today announced the formal launch of a new business unit, GE
Healthcare Financial Services, focused on providing capital, financial
solutions and related services to the healthcare industry.  This
action brings together in a single business the healthcare-related
expertise, assets and capabilities from several GE Capital businesses
as well as Heller Financial, which the company acquired in October

“With $9 billion in assets, GE Healthcare Financial Services is one of
the largest financial service providers dedicated to this diverse
industry.  GE offers a comprehensive range of financing products, from
equipment leasing and real estate financing to working capital lending
and equity investing.”

Source: GE healthcare Financial Services


The FINOVA Group, Inc. Company Capsule at Hoover’s,2163,14640,00.html


Web Dentistry provides a list of Dental Finance Companies that lease

Advantage Merchant Services:

“Advantage Merchant Services is your source for all types of equipment
leases. With our diverse financial resources we can assure prompt
approval. A growing dental practice is apt to face the dilemma of
limited cash flow and the need to add equipment. Leasing can put that
equipment to work for you without a major capital investment and with
real cash-flow advantages.”

Advocate Financial Services:

“Advocate Financial Services, Inc. provides commercial equipment
leasing and financial services. Whether it is $2,000 or $2,000,000
plus, Advocate works smarter than any other leasing or financing
source to provide our clients the best solution to meet their business
objectives. We advocate the needs of the small proprietor, or the
health care provider to the large corporation.”


“Amerifund, Inc provides term debt financing and equipment leasing to
new and growing companies across America. Our experienced and
dedicated staff of professionals evaluates your company's financial
needs whether large or small, tailoring specific programs to assist
you in meeting your company's financial goals.”

Balboa Capital:

“Balboa Capital is a national company so we can provide the
competitive rates and stability you need, while giving you the local
personal service you deserve.“

ChoiceHealth Leasing:

“ChoiceHealth Leasing offers access to the broadest range of
comprehensive, flexible financing options available. These include our
innovative leasing programs, which offer a pre-approved credit line of
up to $250,000 that let you respond quickly to the immediate needs of
your practice.”

Source: Web Dentistry


Medical Equipment Sales & Financial Trends Survey
This survey includes ten pie charts.

Source: Equipment Leasing Association


Other reports that may interest you:

State of the Equipment Leasing Industry Report 2002 (36 pages)
Prepared by PriceWaterhouseCoopers October 2002

2003 Industry Future Council Report (26 pages)
Published by The equipment leasing and Finance Foundation
“Annually, some of American's most influential equipment Leasing
company executives gather to deliberate on the future of the industry
and identify emerging issues.”

Net Readiness of the Equipment Leasing and Finance Industry (54 pages)

“eBusiness brought about a sea of change in the equipment leasing and
finance industry. The introduction of dot coms and web-enablement of
existing systems and processes has forced lessors to rethink their
business strategies. The rapid transformation that swept through the
industry left a great deal of uncertainty in its path. Steady,
incremental, and predictable advancement in leasing-related
technologies has given way to volatile, exponential, and unpredictable
growth in web-based applications and service providers. Leaders
grappled with the implications of what eBusiness did to their
organizations as they attempted to upgrade the pace of their
operations to net speed. At the same time, leasing managers were
uncertain about what lies in the future for their industry, disrupting
their ability to devise long-term strategies.”



ELA conducted a national online focus group with senior executives and
finance professionals to explore their attitudes and perceptions of
the equipment leasing and finance industry. This report details the
results of the focus groups.


The Start-Up Strategy: Leasing to Succeed

“The Equipment Leasing Association has conducted a cross-country
informational study targeting high technology start-up companies. This
study was conducted as a result of the proliferation of
high-technology start-ups into the market, and was designed to measure
the impact of the emergence of high technology start-ups on the
leasing industry.”

The primary purpose of this research was to explore these companies'
financial attitudes and behaviors regarding equipment leasing.
Specifically, the research was conducted to:

Explore attitudes toward start-up financing strategies; 
Explore attitudes and behaviors toward equipment leasing as a
financial strategy; and
Gain a better understanding of perceived benefits and drawbacks of
leasing as a financing option within the technology start-up

You may view this study here:


Understanding Your Equipment Acquisition Strategies
ELA and Financial Executive Survey Findings

“A study conducted by Financial Executive Magazine and the Equipment
Leasing Association (ELA) finds that 85 percent of senior financial
executives agree that leasing equipment is a good business strategy
for meeting the demands of a growing company.”


The Equipment Leasing Association Survey of SBA
State Small Business Winners (12 pages)

“ELA recently surveyed the Small Business Administration's (SBA) State
Small Business Contest winners. This survey found that 73 percent of
small businesses lease equipment, citing the top three reasons to
lease as the ability to manage company growth, take advantage of the
latest technology and improve asset management. This survey report
details the responses of the nation's leading small businesses.”


The Lease Assistant Lessor Directory can be used to find a company.
All companies in the directory are among the more than 800 members of
the Equipment Leasing Association of America. You may choose by type
of equipment leased and geographic location.


Current Leasing News by Category:

I am providing the link to this webpage as information presented here
may not be reproduced without permission from the Equipment Leasing

Recent News Releases


Search criteria:

Medical equipment leasing market
Dental equipment leasing market
Medical equipment leasing industry +billion
Health equipment leasing industry +growth
Health equipment leasing industry major players

I hope this helps. If anything is unclear please request clarification
and I'll be glad to offer further assistance before you rate my answer
and close the question.

Best Regards,
researchondemand-ga rated this answer:5 out of 5 stars and gave an additional tip of: $10.00
You're the best!

Subject: Re: Medical or Dental equipment leasing
From: bobbie7-ga on 29 Jun 2003 20:50 PDT
Thank you very much for the nice comment, rating and tip!

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