The Medical Equipment Rental Industry

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The market size for the medical equipment rental industry has seen a large increase over the past five years. Starting in 2009 the market has seen an increase due to both a recession and the rising costs of medical equipment (Turk). Because of both of these factors medical facilities have been forced to cut back and find new ways to save money. Through this industry, hospitals have begun to rent their medical equipment rather that to buy it, saving the facilities money while not hurting patient care. According to IBIS World, the medical equipment rental industry makes around a 1.3 billion dollar profit each year as well as employing around twenty thousand employees (Turk). Furthermore, the market is growing a 4.7 percent annually and is…show more content…
Currently, the medical equipment rental industry’s competition consists of companies that actually sell medical equipment to hospitals and other places. While the medical rental market is growing fast, the industry has a low market share. Because of the low market share the industry has a hard time keeping up with their competition. Additionally medical rental services appeal to mostly smaller hospitals with smaller budgets. While small hospitals are a large part of the health care industry the larger hospital takes up a large part. Because larger hospitals have larger budgets, it 's easier to buy medical equipment rather that rent it. In order for the medical equipment rental industry to overcome their competition they need to appeal to the larger hospitals in the industry. While the medical equipment rental industry is a relativity new and growing market, the market trend is going in the markets favor. Starting with the recession in 2008 medical facilities restructured their businesses in order to compensate for their budget cuts (Turk). Because of the budget cuts, the market trend has gone in favor of the medical equipment rental industry. This trend leads many medical facilities to rent medical equipment rather than buy the equipment. Furthermore many technologies in the medical equipment industry are within a higher price range and are always changing. Due to the constant updating of medical equipment
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