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Facing Capital Constraints? Our Leasing Framework could alleviate the pressure.

Friday 9 June 2017

The NHS capital environment is constrained. Over the last three years over £2bn has been transferred from the capital to the revenue budget. As a significant proportion of NHS trust’s medical equipment is bought through the capital budget, these financial constraints are impacting on their timely replacement. One option that trusts have is to utilise alternative financing options, which includes leasing.

Leasing is regularly used within the NHS as a way of allowing hospitals to acquire the use of medical equipment whilst paying through a series of rentals over the useful life of the leased asset. This not only alleviates pressure on the capital budget, but has the potential to open up a range of additional benefits such as:

  •  Enabling hospitals to pay for medical equipment as it is used. Repayments are matched to the period of time that the asset is used therefore making them uniformed & predictable.
  • A lease transfers some of the risks of ownership to the lessor. This is particularly the case for operating leases as the equipment will be returned at the end of the lease period.
  • Improved equipment planning
  • Typically pay less than the full capital cost under an operating lease
  • Releases capital funds via sale and lease back.

    In order to capture these benefits, the lease portfolio is carefully managed to ensure that equipment is well maintained and returned in line with the lease contract. In order to support the NHS to maximise the advantages of leasing, we are able to offer a range of different leasing solutions to NHS trusts. This cover includes medical & IT equipment and applies to both finance and operating leases. The benefits of our leasing solutions include:
  • Full support provided throughout the lease quotation and award process. 
  • Lease expiration options such as the return/replacement of equipment or lease extension 
  • The Leasing Solutions team work alongside the NHS Supply Chain Equipment Buyers, Account Managers and Capital Planning Co-ordinators to ensure that a consistent service is delivered to trusts
  • All lease documentation is managed by NHS Supply Chain through a streamlined process with full instructions provided at every stage
  • Payment profiling to fit trust’s needs
  • Freedom to access the framework with no contractual commitment
  • Competitive framework quotation process.

    For more information on how we can support you to obtain and manage your lease please contact:
    Leon Holleboom, Buyer, Leasing Solutions
    Tel: 07714 041730Email: leasing@supplychain.nhs.uk

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