Auxo Medical News

The benefits of using refurbished medical equipment are extensive. As we’ve outlined in our blog — affordability, reliable/trustworthy products, and eco-friendly are among some of the top perks.

Once you’ve made the decision to take advantage of leasing or purchasing refurbished medical equipment for your practice, the next step will be to procure them… taking into consideration budgets as well as preferences.

The following are key areas you should evaluate when making those important decisions.

What exactly is considered ‘refurbished’ equipment?

First things first is understanding what exactly refurbished means.

Refurbished medical equipment is classified as used healthcare devices, restored by the manufacturer or an expert in repair; the final product is an as-good-as or sometimes better than the original unit’s condition, per the manufacturer (OEM) specifications.

The refurbishment method may be different depending on the type of equipment and its condition, but invariably it should include:

• Thorough inspections
• Replacement of worn down parts
• Recalibration
• Cosmetic preservation
• Testing equipment

How can I guarantee that the equipment was adequately refurbished?

When investigating a piece of refurbished medical equipment, there are many questions you should get answered, including whether or not the company has extensive experience in this industry.

• How long has the business been operating?
• What type of technicians refurbish each unit?
• Does the business have expertise in a certain type of equipment?
• Is there any type of warranty or a company promise in place on the refurbished equipment?

In other words, become very familiar with who is behind the equipment before acquiring it.

How much money do you want to invest in this equipment?

Establish a budget to spend on the device. The beauty of a refurbished piece of equipment is that you can enjoy quality, without the hefty price tag. Refurbished equipment is generally marked down anywhere from 30 to 70 percent less than brand new equipment.

What aspects do I prefer about our current equipment?

If you are replacing an existing piece of equipment within your business, you’ll want to evaluate characteristics that you enjoy about it.

• Do you like the way the equipment functions?
• Is the maintenance/upkeep relatively easy?
• Is the cleaning process free of headaches?

Or, you can lower the learning curve of new technology, as well as reduce disrupting workflow processes, by simply choosing to get a more recent model of the medical equipment you already have, but it has been refurbished.

Partnering with the pros

Auxo Medical is a small business that provides personal service, along with several benefits that larger medical suppliers offer. Our refurbished and reconditioned medical equipment is second to none, and our service is something we are incredibly proud of.

We provide medical equipment and services to ambulatory surgery centers, hospitals, laboratories, private physician practices, and more. We have the expertise to provide the equipment you need, the reliability to build a lasting relationship, and the responsiveness and services you need and deserve.

Over the years, we’ve developed our refurbishing processes that address both the cosmetic and functional sides of each unit. We refurbish a wide range of equipment, from patient monitors to infusion pumps, surgical tables, electrosurgical units, and anesthesia machines.

As a follow-up to our recent Section 179 blog post, explaining the ins and outs of the tax code, it’s also important to understand updates for this calendar year.

2019 Limits for Section 179 Tax Code

For 2019, the deduction maximum cap was increased to $1 million, a significant incentive. This allows businesses to deduct the full expense of their medical equipment off of their taxes this year, which can be quite impactful for the end of year financials.

This deduction is valid toward acquiring new and used equipment, as well as software that is “off the shelf.” It also must be financed or purchased, and put to use between January 1, 2019 and December 31, 2019 by midnight.

Here is a Section 179 free download of the Form 4562 needed to utilize this deduction.

Tax Breaks for Small and Medium Sized Business

The 179 tax code originated to help support small to medium-sized businesses. While the cap for total deductions is $1 million in 2019, the limits for the total amount of equipment purchased this year is $2.5 million. Deductions ultimately go away completely once reaching $3.5 million in purchases.

The Future Looks Bright

Historically, Section 179 has had a lot of twists and turns. However, in the past few years, the U.S. Congress put an end to the ongoing changes and mandated that the Tax Deduction limit is now permanent. The limit was increased to $1 million indefinitely beginning in 2019. This is comforting for small and medium sized businesses, so they can plan accordingly and take advantage of the deductions earlier in the year.

Section 179 Qualified Materials

Nearly all types of business equipment that a business buys or finances should qualify for the Section 179 deduction. The equipment itself does not need to be new, but it must be new to the business for the calendar year when it is being used as a deduction.

Here is the list of material goods that generally qualify, according to the official Section 179 website:

• Equipment (machines, etc.) purchased for business use
• Tangible personal property used in business
• Business Vehicles with a gross vehicle weight in excess of 6,000 lbs (see Section 179 Vehicle Deductions)
• Computers
• Computer “Off-the-Shelf” Software
• Office Furniture
• Office Equipment
• Property attached to your building that is not a structural component of the building (i.e.: a printing press, large manufacturing tools and equipment)
• Partial Business Use (equipment that is purchased for business use and personal use: generally, your deduction will be based on the percentage of time you use the equipment for business purposes).
• Certain improvements to existing non-residential buildings: fire suppression, alarms and security systems, HVAC, and roofing.

Section 179 Financing

Many businesses are finding the Section 179 Qualified Financing  to be an appealing possibility, particularly with a variety of anticipated Federal Discount Rate increases on the horizon.

With reasonably priced monthly payments, and minimal or no money down needed beforehand, financing equipment and leveraging Section 179 can add value to your business’ bottom line now and into the future.

If you would like to talk about utilizing the tax code deductions on refurbished medical equipment, contact our team at Auxo Medical — we would be happy to help assist you.

There has been a worldwide increase in demand for refurbished medical systems over the last decade.

The global market for refurbished medical equipment is anticipated to grow more than $16 billion by 2024 and will grow at a CAGR of more than 10% in this forecast period.

More and more hospitals, especially new facilities, are opting for different options in order to shave down the costs of capital investments.

Specific components accelerating the market growth includes the pressure for better overall cost efficiency within healthcare organizations, sitting on a sizable amount of inventory including older or used medical devices, the popularity of medical tourism rising, and private healthcare organizations gaining momentum.