Lease vs. Buy: The Ultimate Guide to Choosing Remote Patient Monitoring Devices

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Did you know a trial to get a broader perspective on Remote Patient Monitoring showed a 50% reduction in hospital readmission and emergency visits?

These statistics often showcase the importance of RPM and the potential it has in shaping the future of the healthcare industry. Ever since CMS started the RPM program in 2015, it has only scaled with the perspective of creating a win-win situation for both patients and providers.
Being a healthcare provider, starting your own RPM program must be lucrative. However, being so deeply invested in the field, one place where you often stumble upon is to acquire RPM devices. Despite being the foundation of the program, you probably have very little control over it.

Here, the choice of leasing vs. buying RPM devices becomes even more confusing. But as every complex problem has a very simple solution, let’s simplify choosing Remote Patient Monitoring devices.

In this blog, you will know the key differences between leasing and buying RPM devices and which one you should choose!

Leasing Vs. Buying Remote Patient Monitoring Devices: Weighing Your Options

To understand the advantages of leasing vs. buying devices, let’s consider two scenarios for ROI analysis for remote monitoring devices.

1. Cost Considerations

Lease:

The main advantage of leasing remote patient monitoring devices is that they come with a lower upfront cost. Understanding the budget constraints in healthcare, this comes up as the ideal choice for the initial implementation of the RPM program. These devices adhere to the regulatory for RPM program and easily embrace scalability in healthcare technology as per your vendor.

Considering the financing options for RPM, leasing RPM devices simplifies the financial planning for you and gives you flexibility in predicting the monthly payments.
Leasing RPM devices is the perfect option for small-scale practices serving a smaller patient population and looking to initiate RPM programs.

Buy:

Compared to leasing remote patient monitoring devices, buying RPM devices requires a larger initial investment. However, it affects the long-term cost of RPM implementation. However, the major advantage of buying remote patient monitoring devices is that they completely eliminate ongoing lease payments, leading to long-term cost savings.

Buying RPM devices should be the ideal choice for large healthcare institutions serving a larger patient population.

2. Device Updates & Technology

Lease:

Leasing remote patient monitoring devices gives you access to the latest devices used in the healthcare industry. Along with that, regular devices and software updates are often covered by the leasing company, making the entire process easier for you.

Along with that, you also get access to the latest technology for optimal patient care.

Buy:

Leasing RPM devices seems lucrative in this scenario as if the upgraded technology and devices become a necessity, you will be required to purchase new remote patient monitoring devices. This can lead to additional costs. Furthermore, while buying RPM devices, there is a risk of using outdated technology in the long run if the device updates are not prioritized.

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Remote Patient Monitoring: Lease Vs. Buy - Decision Guide

3. Program Flexibility & Scalability

Lease:

Scalability in healthcare technology is one of the latest trends in the healthcare industry. Healthcare providers are starting remote monitoring programs to scale their practice. Here, leasing RPM devices offer greater flexibility in adjusting the number of RPM devices as per your needs.
However, the major advantage of leasing RPM devices is that they often come with short-term usability clauses, allowing you to easily adjust your financial options for RPM as your program needs to evolve.

Buy:

While leasing RPM devices is easier, if you choose to buy RPM devices, you should carefully plan to ensure you have enough devices to serve your patient population. Buying RPM devices requires you to plan for the potential future and growth in the program, leading you to adjustments in remote monitoring solutions.
Along with that, selling unused devices can be a challenge as these devices are often used with a specific purpose. This can lead to a waste of resources if the program shrinks or doesn’t work out.

TIP: For flexibility and scalability of your RPM program, then choose cloud-based RPM device infrastructure for the numerous benefits of cloud-based RPM solutions.

4. Maintenance & Support

Lease:

Another thing to consider while choosing to use RPM devices on lease is that it covers the maintenance and support of the devices. In case the devices do not function properly, the vendor can cover the cost, which can further save them the additional cost. However, it is important to discuss the term of use beforehand to avoid any further complications.
The IT infrastructure that supports the interoperability of the devices can further pose additional problems, which can be easily overcome with robust maintenance and support from the vendor.

Buy:

On the other hand, when you buy RPM devices, you require an in-house IT support team to maintain the remote patient monitoring devices. Along with that, if the devices are damaged and require repairs or technical support, the manufacturer may not cover its costs if the devices are out of warranty period.
Furthermore, you also need to ensure compliance in remote patient monitoring devices that you are buying and also ensure that the devices are interoperable.

5. Making the Right Choice

To acquire RPM devices, you need to check for data security in the remote monitoring process and consider the financing options for RPM and the devices that adhere to the regulations for RPM devices. Furthermore, an important factor to consider here is the long-term cost of RPM for benefits.
However, depending on the type of healthcare practice and services you offer, leasing vs buying the RPM devices preferences might change. To get a clear picture of either leasing or buying RPM devices, you should consider your patient population, budget, and the technical resources available. This will give you a brief idea of either buying or leasing RPM devices.

However, making this choice can be confusing, and making the wrong one can impact the long-term cost of RPM. To make it easier for you, here’s the decision matrix curated to help you make informed decisions on leasing vs. buying RPM devices.

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The Ultimate Checklist: Choosing the Right Acquisition Method for Your RPM Program
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Conclusion

Buying or leasing RPM devices is a dilemma that comes at the start of every RPM program. Despite being a healthcare provider, the changing nature of the healthcare industry has forced many practices to reconsider their decisions.

At least in the case of RPM programs, the devices have been the point of difference. However, if you have a strategic plan to implement your program and a better understanding of your budget, making a choice becomes clear.

RPM program and device management are crucially important for the success and sustainability of your program. Leasing and buying RPM devices have their own advantages and disadvantages, but which one suits your needs the best will result in making the right decision.

Frequently Asked Question’s

Leasing RPM has a lower initial upfront cost compared to buying the RPM devices. However, in the long run, leasing RPM devices can cost you significantly more than buying them. However, leasing or buying RPM devices highly depends on the practice, specialty, and budget.
Leasing RPM devices comes with a lower initial cost but costs higher in the long term. On the other hand, buying RPM devices comes with higher implementation costs but costs less in the complete RPM program life cycle.

Depending on the terms of leasing the devices, there are ideally three options that you get:

  • Return of Devices
  • Purchase the Devices
  • Extend the Lease

If you are leasing RPM devices, the maintenance and repair of the devices come under the vendor’s responsibility.


If you are buying RPM devices, the maintenance and repair of the devices fall under the owner’s responsibility.

No. As far as the latest updates in the program regulations there are no tax implications for leasing or buying the RPM devices.

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