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New research highlights role of asset finance in enabling medical technology investmentISELIN, N.J. --(Business Wire)-- New research from Siemens' (News - Alert) Financial Services unit (SFS) shows that finance is playing an increasingly important role in enabling medical equipment acquisition for healthcare organizations around the globe. According to the study amongst the global top 40 medical equipment manufacturers, close to 70% of respondents had seen an increasing demand for healthcare equipment finance (asset finance) from their customers over the last two years. During this period, the proportion of global medical equipment sales financed has grown by an average of 6.9% annually. Over 60% of respondents believed that finance penetration will continue to rise over the next two years. Other underlying trends also emerged from the research. Two thirds of respondents reported that their healthcare customers are feeling a squeeze on their capital budgets. 57% reported growing demand for tailored financing for healthcare organizations to acquire new equipment. In particular, demand is increasing for tailored monthly finance payments (grace periods) to help meet expected project cash flow / financial return objectives, financing end-to-end clinical or diagnostic processes . Gary Amos, Head of Commercial Finance - Region Americas, commented, "In the US, intensified competition between healthcare providers is driving the need for greater investment in up-to-date medical equipment in the battle to win patients. However, budget constraints mean that many healthcare organizations are limited in their ability to make essential equipment upgrades and replacements. Using sustainable financing techniques such as asset finance, healthcare providers can undertake medical technology investment to improve clinical efficiency and accuracy despite financial pressures." Another common observation from respondents was a change in the approach to making equipment acquisition decisions amongst all healthcare institutions across the world (public an private). There appears to be a gradual shift in investment decisions away from clinicians to finance professionals (e.g. CFOs), except where technological advances make such a difference in performance as to offer major performance (diagnostic/clinical outcomes), productivity or safety increments. Methodology: Research was conducted by independent organization MindMetre Research amongst the global top 40 medical equipment manufacturers in Spring this year. In each respondent company, multiple interviewees held responsibility either for a region of the world (e.g. the Americas; Europe; etc) or had a global remit. Respondents were interviewed on their views in relation to recent trends in demand for asset finance from healthcare organizations worldwide, their future projections for this demand, and the country differences in demand for asset finance and its main drivers. This press release and full report is available at: For further information on Siemens Financial Services, please visit: www.usa.siemens.com/finance Follow us on Twitter (News - Alert) at: www.twitter.com/siemens_sfs Siemens AG (News - Alert) (Berlin and Munich) is a global technology powerhouse that has stood for engineering excellence, innovation, quality, reliability and internationality for more than 165 years. The company is active in more than 200 countries, focusing on the areas of electrification, automation and digitalization. One of the world's largest producers of energy-efficient, resource-saving technologies, Siemens is No. 1 in offshore wind turbine construction, a leading supplier of combined cycle turbines for power generation, a leading provider of power transmission solutions and a pioneer in infrastructure solutions and automation and software solutions for industry. The company is also a leading supplier of medical imaging equipment - such as computed tomography and magnetic resonance imaging systems - and a leader in laboratory diagnostics as well as clinical IT. In fiscal 2013, which ended on September 30, 2013, revenue from continuing operations totaled €75.9 billion and income from continuing operations €4.2 billion. At the end of September 2013, Siemens had around 362,000 employees worldwide on the basis of continuing operations. Further information is available on the Internet at www.siemens.com.
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