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April 2012

A recent industry report by HealthLeaders Media painted the picture of a strong healthcare sector, accounting for one in five jobs in the economy in the first two months of 2012. Continuous increases in healthcare costs and the aging population lead many experts to label the healthcare industry as “recession-proof.”

However, there is another trend generating uncertainty and caution; the possibility of up to $360 billion in cuts of Medicaid, Medicare and other federally funded healthcare programs and services. We’ve heard from many of you about proposed cuts to capital plans and to expenses as well as plans to partner with vendors to find ways to cut costs in the short term while also continuing the business relationship in the long term.

The fact remains that renting medical equipment has allowed hospitals to increase their cash flow, maintain and make substitutes in the current equipment fleet and be better prepared for peaks in patient census. Of course, the US Med-Equip equity option that allows hospitals to apply a portion of rental payments toward the purchase of medical equipment is also something hospitals may consider as budgets condense. 
US Med-Equip is very aware that budget constraints trickle down to the vendor level, but we’re committed to working with our clients and doing everything in our power to accommodate their needs. It’s about doing what makes sense for hospitals, and most importantly, for patients.

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