EverBank: Medical Equipment Upgrades a Priority in 2015

EverBank Commercial Finance, a subsidiary of EverBank, released results from a survey of medical doctors conducted at this year’s Radiological Society of North America (RSNA) annual meeting in Chicago. Findings showed the top priorities for capital spending for the majority of MDs in the New Year will be upgrading existing equipment or technology (60%) and expanding into a new building or facility (21%).

“Despite concerns about reimbursements, we’re witnessing an appetite for upgrading among physicians,” said Justin Tabone, general manager for EverBank Commercial Finance’s Healthcare business. “While the Affordable Care Act has introduced an element of uncertainty for some MDs, financing presents a strategic capital expenditure option for equipment acquisition challenges.”

Deal volume within the medical space is likely to continue. The survey found practitioners expect a strong deal market in 2015, with two-thirds (67%) of respondents whose practices are privately owned saying they anticipate entertaining an acquisition opportunity with a hospital in the next 12 to 18 months.

In addition to the 60% of respondents who identified upgrading existing equipment or technology as their top capital expenditure priority in 2015, 21% prioritized expansion into new facilities and 3% indicated a focus on office improvements in the New Year. The remaining 16% said purchasing or leasing new equipment or technology was essential.

M.D.’s making equipment upgrades and acquisitions said they would rely heavily on financing. A third plan to acquire equipment in 2015 through financing, while 30% plan to use cash, 25% will use a lease, and 12% will use grants.

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