In today’s healthcare environment, institutions are facing unprecedented financial challenges. Interest rates are at their highest levels in nearly two decades, impacting borrower cash flow, asset valuations, and refinancing abilities. Federal funding cuts, rising labor costs, and inflation continue to strain the budgets of hospitals and specialty clinics. Amid these pressures, rapid technological advancements, particularly in medical imaging and AI, drive the need for cutting-edge medical equipment, which presents a unique financial hurdle.
Acquiring the latest imaging equipment is critical for healthcare institutions looking to stay competitive and deliver excellent patient care. However, 39% of healthcare providers failed to maintain positive margins,1 and 63% face significant hurdles in funding long-term capital needs.2 This is where Canon Medical Finance is a key partner, offering customized, flexible financing solutions to meet healthcare organizations’ financial and technological demands.
How OEM Lenders Can Outperform Third-Party Lenders
Working with an OEM lender, like Canon Medical Finance, has some key advantages that set it apart from traditional banks or third-party financing companies. OEM lenders have in-depth knowledge of the equipment they finance, allowing them to offer terms and conditions that third-party lenders cannot match.
“At Canon Medical Finance, we believe flexibility and customization in financing is key,” states Trish Malone, Senior Director, Canon Medical Finance. “Our healthcare finance experts partner
with healthcare organizations to provide a range of financing solutions, including extensive financing product offerings, competitive interest rates, and prompt credit decisions. This approach ensures customers get the right financial plan to meet their cash flow needs,” says Malone.
This unique advantage results in more favorable financing options, seamless upgrade paths, and comprehensive support throughout the equipment’s life. OEM lenders can customize their approach to healthcare institutions and create financing plans that address specific budgetary and operational requirements. Jay Darley, Senior Zone Manager at Canon Medical Finance, adds, “Although the placement of Canon imaging equipment is our main focus, we can also offer solutions for non-Canon assets, such as leasehold improvements, IT, and lines of credit.”
Conversely, third-party lenders typically offer generalized financing that needs more flexibility to meet healthcare-specific needs. They may require healthcare organizations to pay off an entire existing lease before financing a new upgrade, or they might inflate buyout costs at the end of a lease term. Canon Medical Finance eliminates these concerns by offering transparent, predictable financing terms that simplify upgrading to newer technology.
Canon Medical Finance coordinates with Canon’s sales and service departments, ensuring their clients receive comprehensive support from equipment delivery throughout its entire operational life. “The coordination with our internal departments allows us to offer unparalleled service, making the transition to new equipment smoother and more cost-effective,” adds Malone.
Adapting to Current Financial Realities
Healthcare providers operate in a challenging financial climate. Nearly 78% of hospital CFOs anticipate financial health becoming increasingly important over the next three years.2 Rising interest rates, inflation, and high labor costs make it more difficult for healthcare institutions to meet their cash flow needs. Acquiring capital equipment, such as medical imaging technology, is becoming a greater financial challenge.“We’re seeing healthcare facilities face rising costs, shrinking margins, and the need for continuous technological upgrades, so financial flexibility, resources, and support are becoming more necessary to thrive in this challenging environment,” says Malone. “We see ourselves as a partner in your institution’s mission to not only deliver high-quality care but to help you maintain your financial health with your next diagnostic imaging equipment purchase.”
Canon Medical Finance is wholly owned by Canon USA and is a top 50 Finance Company in the U.S., funding over $1B annually. Canon Medical Systems USA is one of only two manufacturers in diagnostic imaging with an in-house financing arm giving them the freedom and resources to do more for their partners.
References:
1. Healthcare Financial Management Association, Health System CFO Pain Points 2024 Summary, March 2024.
2. "Race for Cash: Pivoting Your Denials Strategy for a New Era" ©2024, Knowtion Health.
Contact Trish Malone, Senior Director of Financial Programs, to explore how Canon Medical Finance can help you meet your unique challenges and achieve your financial goals. tmalone@us.medical.canon
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