Watch for pitfalls when analyzing lease options.
Seemingly minor provisions included in leases of major equipment can substantially increase a healthcare organization's expenses. When reviewing lease bids, financial managers should beware of commitment fees, progress payment interest, residual value, and other variables in the agreement. On the whole, the costs of leasing options should be viewed for their effects on a hospital's cash flow at various points during the rental period.
Grant
L
L
Premier Hospitals Alliance, Westchester, IL.
O'Donnell
D
D
D002201:Capital Expenditures; D003657:Decision Making; D004467:Economics; D004865:Equipment and Supplies, Hospital / Q000191:economics*; D005376:Financial Management / Q000191:economics* / Q000379:methods*; D005377:Financial Management, Hospital / Q000379:methods*; D007860:Leasing, Property / Q000191:economics*; D006278:Medicare; D013660:Taxes; D013675:Technology, High-Cost; D014481:United States