Finance / Investment

Alternative Financial Solutions for Medical Technology Acquisition

Publication Date	May 2005
Publisher	HSB Consulting
Product Type	Report
Pages	108
ISBN Number	not applicable
Product Code	HBS00018

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This report focuses on methods of acquiring new medical equipment other than through the outright purchase by direct capital funding.

There are a number of systems available that fulfil this role. This report examines what such arrangements are, what benefits and disadvantages they can provide and any regulations governing them, the mechanisms that are employed in implementing such arrangements and the experiences of companies in the medical device sector who operate such systems and the experiences of end users. As such it is targeted at medical device companies, and relevant financial institutions wishing to enter and exploit potential in this industry sector.

This latest strategic publication provides:

An analysis of the benefits and advantages of various financial services and programs deployed within the medical devices and diagnostics industries: financial leasing, fee per procedure, fee per use programs

Case studies reviewing financial services offered directly by Medical Devices and Diagnostics companies

Current trends, developments and potential opportunities in medical equipment leasing market

Legislation and regulatory issues in the US and key European countries

The recommended approaches to lease financing in the US and key European markets

1. EXECUTIVE SUMMARY 5

2. INTRODUCTION 13

2.1 The origins of leasing 13
2.2 The target audience 14

3 LEASING EXPLAINED 15 3.1 What is leasing? 15
3.2 Leasing types 16
3.2.1 What is Financial Leasing? 16
3.2.2 What is Operational Leasing? 18
3.2.3 What is Fee per use? 19
3.3 Advantages of leasing 20
3.3.1 Access to the latest technologies 20
3.3.2 Financial advantages of leasing and other options 22
3.3.2.1 Cash purchase 22
3.3.2.2 Loan purchase 24
3.3.2.3 Fee per use 25
3.3.2.4 Overdrafts and other banking arrangements 27
3.4 Choosing the correct leasing or other financing option 29
3.5 The leasing process 34

4 COUNTRY SPECIFICS 38

4.1 The US 40
4.2 Europe 43
4.2.1 France 53
4.2.1.1 Accounting 54
4.2.1.2 Taxation 55
4.2.1.3 Loans 56
4.2.1.4 Leasing company example 56
4.2.2 Germany 56
4.2.2.1 Accounting 58
4.2.2.2 Taxation 58
4.2.2.3 Loans 59
4.2.2.4 Leasing company example 59
4.2.3 Italy 59
4.2.3.1 Accounting 61
4.2.3.2 Taxation 62
4.2.3.3 Loans 62
4.2.3.4 Leasing company example 62
4.2.4 The Netherlands 63
4.2.4.1 Accounting 64
4.2.4.2 Taxation 64
4.2.4.3 Loans 65
4.2.4.4 Leasing company example 65
4.2.5 Poland 66
4.2.5.1 Accounting 68
4.2.5.2 Taxation 68
4.2.5.3 Loans 69
4.2.5.4 Leasing company example 69
4.2.6 Spain 69
4.2.6.1 Accounting 70
4.2.6.2 Taxation 71
4.2.6.3 Loans 72
4.2.6.4 Leasing company example 72
4.2.7 The UK 73
4.2.7.2 Taxation 75
4.2.7.3 Loans 76
4.2.7.4 Leasing company example 77

5 THE INDUSTRY PERSPECTIVE 78

5.1 Strategies 78
5.1.1 Baxter Capital. 82
5.1.2 BPH Leasing 83
5.1.3 De Lage Landen International B.V. 84
5.1.4 GE Healthcare Financial Services. 87
5.1.5 IBM Global Financing. 88
5.1.6 Leaseurope 89
5.1.7 Medical Device Leasing 90
5.1.8 Stryker Financial Services 91
5.1.9 Philips Medical Capital 92
5.1.10 Siemens Financial Services 95
5.1.11 U.S. Bancorp Equipment Finance, Inc 96
5.2 Strategy overview. 98
5.3 Industry examples. 100
5.3.1 Boston Medical Center 100
5.3.2 Rockville General Hospital 100
5.3.3 Walm Lane Nursing Home 101