New or used equipment? What's best for your new practice?

Optometric Management, Sep 2000

QUESTION: I'm having trouble finding good used equipment for my new office, and I really can't afford new equipment. How important is brand new equipment to a new practice?

ANSWER: Unfortunately, good used equipment is fast becoming an oxymoron, says Philip M. Buscemi, O.D., whose column "Instrumental Strategies" appears every month in Optometric Management. The reality is that in many cases you need new equipment to meet the needs of your patients and your practice.

One way to make new equipment affordable, says Dr. Buscemi, is to take advantage of leasing programs that let you pay a lower monthly rate with a balloon payment at the end of the lease to purchase the equipment. Remember, the government subsidizes your purchase with tax breaks on the interest you pay.

This strategy definitely costs more in the long run, but you can derive a couple of benefits. You'll have greater cash flow when you need it starting out. Later, when your practice is established and your financial position is stronger, you should be able to afford to buy the instrumentation outright after the lease has expired. If you can't afford a pay-out, you could refinance the balance at the end of your lease.

And this brings up another important topic, says Dr. Buscemi.

"Establish a relationship with your banker. I've been using the same guy for more than 15 years. When I need equipment now, I get great rates not just because of my business, but because I've referred people to him, some of whom have become huge accounts."

So don't be nearsighted when buying equipment for your new practice, be farsighted and plan for the long term.

Mail your questions to: New OD Advice,1300 Virginia Dr., Suite 400, Ft Washington, PA 19034; or e-mail them to wisemf@boucher1.com.