DPC News

RESEARCH and MARKETS | COVID-19 Catalyzes Exploration of Leasing Models Among Healthcare Administrators –

Global Medical Device Leasing Market Growth Opportunities: COVID-19 Catalyzes Exploration of Leasing Models Among Healthcare Administrators – ResearchAndMarkets.com

September 30, 2021 10:59 AM Eastern Daylight Time

DUBLIN–(BUSINESS WIRE)–The “Global Medical Device Leasing Growth Opportunities” report has been added to ResearchAndMarkets.com’s offering.

Globally, hospitals and health systems face financial pressure caused by high operating and administrative costs, declining revenue and reimbursement rates, and the increasing cost of both medical devices (due to technology advancements) and infrastructure.

The COVID-19 pandemic has intensified this financial crisis as patient volumes dropped and negatively impacted revenues further. In spite of these challenges, hospitals must invest in technology that improves operational efficiency and patient outcomes. State-of-the-art technology attracts more patients and helps hospitals recruit or retain skilled clinicians by improving their capability and motivation. However, many hospitals and health systems aim to preserve cash, making them risk averse to funneling significant amounts into capital equipment that is prone to obsolescence. Consequently, hospitals are in need of alternative financing or procurement options. This need is driving innovative supply models such as leasing among medical device OEMs and leasing companies.

Leasing models position hospitals to procure advanced equipment while conserving cash, with the option of owning the devices or renewing the contracts at the end of the leasing term. Moreover, some medical device OEMs are improving medical device affordability for hospitals through innovative financing; others are partnering with third-party financing companies to design customized financial solutions. Innovative sales models like leasing not only improve device adoption among healthcare providers but also improve revenues for OEMs and leasing companies through the introduction of value-added offerings. In developed markets like the United States, as providers face increasing pressure from payers to contain costs via value-based reimbursements, providers demand that medical device vendors share the risk and offer improved value beyond their products.

Leasing catalyzes the creation of new opportunities for vendors to introduce service-based business models such as inventory optimization and asset management, predictive maintenance, and equipment life cycle management. Medical device leasing enables hospitals in developed markets to improve device efficiency by passing on the risk of equipment downtime to vendors and freeing them to focus on core clinical goals while improving patient outcomes. In emerging markets, leasing creates improved access to appropriate technologies at a lower upfront cost to providers. Leasing allows OEMs to decrease the sales cycle, avoid huge discounts as the cost is steady and ongoing, bundle solutions, and create a recurring revenue stream. Considering the ongoing financial pressure on providers and increasing demand on medical device vendors, the product-based commoditization model will pave the way toward a leasing or servitization model, which benefits all stakeholders in the value chain.

Key themes in this research service:

  • Impact of key strategic imperatives on the global medical device leasing market
  • Scenarios favoring device leasing
  • Changing dynamics of healthcare service provision
  • Benefits of leasing models for device vendors
  • Shift from product financing to servitization model
  • Value drivers among distinct markets and end users
  • Leasing value chain
  • Solution maturity across vendor landscape
  • Top growth opportunities

Key Topics Covered:

1. Strategic Imperatives

  • The Impact of the Top Three Strategic Imperatives on the Medical Device Leasing Market
  • Growth Opportunities Fuel the Growth Pipeline Engine

2. Market Overview

  • Medical Device Leasing Market Segmentation
  • Medical Device Leasing Driven by Capital Budget Constraints and Need to Preserve Cash Flow Post COVID-19
  • Favorable Terms Make Leasing the Preferred Mode of Financing Medical Devices
  • Favorable Leasing Device Scenarios for Providers
  • Increased Operating Costs, Decreased Reimbursement Rates, and COVID-19-induced Volume Drop for Health Systems to Accelerate Leasing Model Adoption
  • Leasing or Alternative Purchasing Trends Across Key Segments

3. Factors Impacting Leasing Model Adoption

  • Determinants to MedTech Acquisition (New, Replacement, and Upgrade)
  • Key Drivers for Adoption of Medical Device Leasing Model by Providers
  • Key Constraints to Provider Adoption of Medical Device Leasing Model
  • Changing Dynamics of Healthcare Services Favor Leasing as an Alternative Procurement Model for Providers

4. Value Proposition for Lessors

  • Key Challenges and Benefits Across the Medical Device Life Cycle Abated by Leasing Model
  • Benefits of Leasing Model for Medical Device Vendors
  • Leasing Kick-started the Servitization Trend for Vendors, Yielding Higher Margins for OEMs
  • Leasing Vendors Must Decipher Value Drivers Among Distinct Markets and End Users

5. Competitive Landscape

  • Leasing Value Chain
  • Solution Maturity Across the Leasing Vendor Landscape Shows Transition from Commoditization to Differentiated Offering

6. Growth Opportunity Universe

  • Growth Opportunity 1: COVID-19 Catalyzes Exploration of Leasing Models Among Healthcare Administrators
  • Growth Opportunity 2: Partnering with Leasing Companies Enables OEMs to Improve Market Access, Customize Offerings, and Boost Positioning
  • Growth Opportunity 3: Transitioning from a Product-centric to Solution-oriented Approach Improves Customer Retention and Margins

For more information about this report visit https://www.researchandmarkets.com/r/ou72oh

About ResearchAndMarkets.com

ResearchAndMarkets.com is the world’s leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

Contacts

ResearchAndMarkets.com
Laura Wood, Senior Press Manager
press@researchandmarkets.com

For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900

SOURCE: https://www.businesswire.com/news/home/20210930005704/en/Global-Medical-Device-Leasing-Market-Growth-Opportunities-COVID-19-Catalyzes-Exploration-of-Leasing-Models-Among-Healthcare-Administrators—ResearchAndMarkets.com

Categories: DPC News

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s