Alternative Financial Solutions for Medical Technology Acquisition

This publication has been discontinued on July 19, 2011.

Introduction

Abstract

This latest strategic publication from HBS Consulting 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

The report is an invaluable resource illustrating, as it does with regularity throughout, how major, middle-tier and smaller medical device manufacturers can gain competitive advantage by developing profitable financing businesses. It is targeted at medical device companies and financial institutions that wish to enter and exploit potential in this sector or who are currently reviewing existing financial programs.

Table of Contents

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

6 THE MARKET 102

• 6.1 General market trends 105
  • 6.1.1 Countries 105
  • 6.1.2 Equipment 105
  • 6.1.2 Companies 107

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