Choose your region

or choose our
SEARCH
REGION: UNITED KINGDOM
LOW COST – HIGH BENEFIT

Calculating backward – thinking ahead

Using a pay-per-patient model to manage investment risks in healthcare technology

Capital expenditure on large-scale medical equipment is a considerable strain on the balance sheet of modern hospitals. Furthermore, return on investment is directly dependent on the estimated number of cases and the amounts that can be invoiced for them. This makes it difficult to forecast cost efficiency, resulting in unwanted risks in financial planning.

The solution is a back-to-front approach to the problem, which transfers the risks to specialist financing partners, calculating backward from the individual product rather than forward from the acquisition cost. This may sound like a bold approach, but it can make work a lot easier for a hospital's finance department.

 

In practice it looks like this:

  • Instead of the traditional calculation sequence price, lifetime, discount rate, financing or lease instalment, and depreciation, the specialists use expected number of treatments, price per treatment, capital investment amount, and lifetime.
  • This means that the lease instalment is based on the expected number of treatments and the potential associated revenue, with the funding partner bearing some of the risk of deviation in the number of treatments.
  • The financing model can be adapted to the requirements and situation of the customer as part of the annual review cycle.

 

Using a simplified example:

  • Expected number of treatments per year: 2,500 (or more)
  • Price per procedure: £100
  • Price of a CAT scanner: £1,000,000
  • Annual cost of maintenance / operating supplies: £100,000
  • Lifetime: 84 months

 

If you would like to discuss a more detailed calculation using your own figures, please contact us.

 

CONTACT ME NOW!

We'd love to hear from you! Feel free to contact one of our experts directly or fill in our short form below.

Peter Krause

Head of Healthcare Sector Sales Germany

Andrew Hockenhull

Head of Healthcare Business Support

Contact Form

Many thanks for your message to CHG-MERIDIAN.
We will get back to you as soon as possible!

* This is mandatory

Find out more

Discover the other solutions and services that we provide.
HEALTHCARE TECHNOLOGY

EFFECTIVE EQUIPMENT MANAGEMENT - FLEXIBLY FINANCED

Bespoke financial solutions with your best interests at heart.

READ ON 
Healthcare Remarketing

Providing you with more options and better value

We can take care of your assets right up until the end of the lifecycle by arranging for the deinstallation, collection, removal and remarketing of redundant or surplus healthcare or IT equipment.

READ ON 
SOARING COSTS UNDER CONTROL

An end to high up-front costs

How pay-per-patient models can help to preserve liquidity

READ ON 
Share content: