“Leasing has worked for us because it's helped us manage our cash flow. First American coordinates paying the various vendors. First American has taken that right off of us and we don't have to worry about it.”
-John Murray, CFO Loretto Health and Rehab Center
Providers are spending billions of dollars on software and even more when consulting fees and implementation costs are factored in. By 2020, the North American Health IT market is expected to reach $104 billion. Currently, some providers are spending upwards of $1.2 billion just for EHR upgrades. Software is often the largest annual expense for providers, even over medical equipment and renovations.
Having outdated software can be risky because it can cause errors and those errors can be very pricey. Medical errors cost providers over $19.5 billion per year. When accounting for lost productivity, this could actually cost as much as $1 trillion per year. Medical errors are the third leading cause of death in the US after heard disease and cancer.
Financing software not only saves time and resources, but it can help to preserve cash, keep software updated, and stay compliant with regulatory requirements.
"Providers are investing in software to develop process efficiencies, reduce cost, and leverage data for better patient care."
– Michael Haines, Vice President
First American Healthcare Finance
Commonly Leased Software Components:
- Software and EHRs
- Networking, routers, wireless access points
- Security, firewalls, cloud technology
- Servers, Storage
- Consulting and implementation fees
- Tablets, mobile devices, laptops, desktops
- Preserve cash
- Spread payments over time
- Align equipment needs with budget
- Reduce costs
Interested in learning more? View our infographic.