Medical Equipment Financing: Leasing vs. Buying MRI and Dental Chairs

You know that feeling when you walk into a colleague’s practice, and everything just gleams?

The waiting room chairs don’t squeak. The X-ray machine is digital and instant. And in the back, there’s an MRI scanner that looks like it belongs on a spaceship rather than in a clinic. It smells like success. Or maybe just antiseptic.

Then you go back to your own office. Your ultrasound machine takes three tries to boot up. The dental chair has a suspicious tear in the vinyl that you’ve been covering with a towel. You know you need to upgrade. You have to upgrade to stay competitive. Patients notice these things. They equate new technology with better care.

But then you look at the price tag.

A new 1.5T MRI scanner? That’s easily $300,000, maybe half a million installed. Even a high-end dental delivery unit can run $15,000. It’s enough to make your blood pressure spike.

So, how do you get the tech without bankrupting the practice? You finance it.

But here is where it gets sticky. Do you buy it with a loan, or do you lease it? It’s the classic debate: ownership vs. flexibility. Equity vs. cash flow. I’ve seen brilliant doctors freeze up at this decision because the math can be confusing.

At Eboost Partners, we help healthcare providers navigate this maze every day. We provide medical practice loans from $5K to $2M to help you get the tools you need. Whether you are eyeing a CT scanner or just need to replace a few autoclaves, let’s break down the real cost of upgrading your clinic.

Why Financing Medical Equipment Makes Sense

Honestly, paying cash for depreciating assets is usually a bad idea.

I had a client, a dermatologist, who prided herself on being debt-free. She saved up $150,000 cash to buy three new lasers. Great, right? Two months later, a pipe burst in her building, flooding the reception area. She had zero cash reserves left to fix it because it was all tied up in lasers. She had to take out a high-interest emergency loan just to replace the drywall.

Financing is leverage. It lets you use the equipment to generate revenue while you pay for it. The laser should pay for its own monthly note with the first three treatments of the month. Everything after that is profit.

Medical Equipment Commonly Financed

It’s not just the million-dollar machines. We see applications for everything that helps a patient get better (or pay their bill).

Diagnostic Equipment

This is the expensive stuff.

• MRI & CT Scanners: The heavy hitters of radiology.
• Ultrasound Machines: Essential for OB/GYN and cardiac practices.
• Digital X-Ray Sensors: Going filmless is expensive upfront but saves time.

Dental Equipment

Dentists have some of the highest overheads in medicine.

• Dental Chairs: The centerpiece of the operatory.
• CBCT Machines: 3D imaging is becoming the standard of care for implants.
• CAD/CAM Systems: Same-day crown milling machines (like CEREC) are pricey but highly profitable.

Other Clinical Equipment

• Exam Tables: Power tables for accessibility.
• Electronic Health Records (EHR) Hardware: Computers and servers.
• Laboratory Analyzers: For running blood work in-house.

Buying Medical Equipment: How It Works

When people talk about “financing,” they usually mean taking out a loan to buy the equipment. This is the traditional path.

What Buying Means

You borrow money (an equipment loan), give it to the vendor, and you own the machine. The lender has a lien on the equipment until you pay it off. Once the final payment is made, the lien is released, and it’s 100% yours.

Pros of Buying

• Equity: You own an asset. You can sell it later if you want.
• Section 179 Deduction: This is the big one. The IRS allows you to deduct the full purchase price of qualifying equipment from your gross income in the year you buy it (up to a limit). It’s a massive tax shield.
• No Restrictions: There are no usage limits. You can run that MRI machine 24/7 if you want; nobody charges you “overage fees.”

Cons of Buying

• Obsolescence Risk: This is the danger zone. If you buy a cutting-edge ultrasound today, in five years, it might be a dinosaur. You are stuck with it until you can sell it (for pennies).
• Down Payment: Loans often require 10-20% down. That’s cash out of pocket.

Leasing Medical Equipment: How It Works

Leasing is basically renting, but with more structure.

What Leasing Means

The lender (lessor) buys the machine and rents it to you for a set period (usually 2 to 5 years). You pay a monthly fee to use it. At the end of the lease, you usually have three choices:

1. Return it: Send it back and get the new model.
2. Purchase it: Buy it for Fair Market Value (FMV) or a bargain price like $1.
3. Renew: Keep renting it.

Pros of Leasing

• Stay Cutting Edge: This is huge for radiologists. You can upgrade your tech every 3 years without the hassle of selling old machines.
• Lower Upfront Costs: Leases often require zero down payment or just the first and last month’s payment.
• Tax Deductions: Lease payments are often fully deductible as operating expenses. (Talk to your CPA, obviously).

Cons of Leasing

• Higher Long-Term Cost: You usually pay more in total interest/fees over the life of a lease than a loan.
• You Don’t Own It: At the end of the term, you have nothing to show for it unless you buy it out.

Leasing vs. Buying: MRI Machines

Let’s look at a real-world example: A 1.5 Tesla MRI Scanner.

Cost Considerations

• Purchase Price: $300,000 (used/refurbished) to $600,000 (new).
• Maintenance: $30,000/year service contract.

Best Option Scenarios

The verdict? Lease it.

Why? MRI technology moves fast. A 10-year-old MRI is hard to find parts for and produces grainier images than modern standards. Leasing allows you to swap it out for a 3T machine in 5 years when your competitors upgrade. Plus, removing an old magnet is an expensive nightmare; with a lease, disposal is often the lessor’s problem.

Leasing vs. Buying: Dental Chairs

Now, let’s look at something simpler: A standard A-dec Dental Chair package.

Cost Considerations

• Purchase Price: $15,000.
• Lifespan: A good chair can last 15 to 20 years.

Best Option Scenarios

The verdict? Buy it.

Dental chairs are durable goods. The technology doesn’t change much. A chair from 2010 still lifts the patient up and down just fine. There is no reason to pay a perpetual lease on something that holds its value well and has a long functional life. Take the loan, pay it off in 3 years, and enjoy 12 years of payment-free usage.

Comparison Table: Leasing vs Buying Medical Equipment

Financing Options for Medical Equipment

So, where do you get the money?

Equipment Loans

Simple interest loans. You get the cash, buy the gear.

• Terms: Typically up to 5-7 years.
• Rates: Fixed.
• Eboost: We offer terms up to 24 months for quick repayment, ideal for smaller equipment needs.

Equipment Leasing Programs

• Fair Market Value (FMV) Lease: Lower monthly payments, but buying the machine at the end costs market price. Good for tech you plan to return.
• $1 Buyout Lease: Higher monthly payments, but you own the machine for $1 at the end. This is basically a loan disguised as a lease for tax purposes.

SBA Loans (Partial Equipment Financing)

If you are doing a massive expansion – building a new wing and filling it with equipment – an SBA 7(a) loan might be the play. It wraps construction, working capital, and equipment into one big loan. The downside? It takes months to close.

Medical Equipment Financing With Fair or Bad Credit

“Jordan, I’m a great doctor, but my divorce wrecked my credit score.”

I hear it all the time. The good news? Medical equipment financing is very forgiving.

Because the equipment acts as collateral, lenders are less worried about your FICO score. If you stop paying, they can just come take the laser back and sell it to another doctor. This reduces their risk.

At Eboost Partners, we look at the practice’s cash flow.

• Are you seeing patients?
• Are insurance reimbursements steady?
• Do you have a history of revenue?

If the answer is yes, we can usually get you approved, even with “fair” credit. We focus on business loans for bad credit because we know a credit score doesn’t measure your clinical skill.

How Lenders Evaluate Medical Equipment Financing

When you send us an application, here is what we are checking:

1. Time in Business: Startups are riskier. Established clinics (2+ years) get better rates.
2. Cash Flow: Can your current revenue cover the new loan payment? We check your bank statements.
3. The Equipment Itself: Is it reputable? Financing a brand-name GE ultrasound is easier than financing a “gray market” laser from an unknown overseas vendor. The resale value matters.

Common Mistakes Clinics Make

Buying Too Much Tech

Just because you can finance a $100,000 laser doesn’t mean you should. Do you have the patient volume to support it? If you only do two treatments a month, the machine is a paperweight. Run the ROI numbers first.

Ignoring Installation Costs

Delivery, installation, and training can add 10-20% to the cost. Make sure your financing covers these “soft costs,” or you’ll be writing a big check on delivery day.

Mismatching Terms

Don’t take a 5-year lease on a computer server that will be obsolete in 2 years. Match the financing term to the equipment’s useful life.

How to Choose Between Leasing and Buying

Ask yourself these three questions:

1. Will this technology change in 3 years? (Yes = Lease. No = Buy).
2. Do I have cash for a down payment? (Yes = Buy/Loan. No = Lease).
3. Do I need a big tax write-off this year? (Yes = Buy/Section 179).

Your stethoscope might be the only tool you need to diagnose a murmur, but to run a modern practice, you need serious hardware. Don’t let the price tags scare you into stagnation.

Smart financing isn’t debt; it’s a tool for growth. It’s how you bring the best care to your patients without draining your reserves.

At Eboost Partners, we specialize in helping healthcare providers get the equipment they need, when they need it.