Healthcare leaders face increasingly complex decisions about medical equipment investments. Les Jebson, Regional Administrator at Prisma Health, brings critical insights into navigating the financial, strategic, and operational challenges of medical equipment acquisition. Drawing from extensive experience across private and academic healthcare settings, Jebson sat down with MGMA Insights podcast host Daniel Williams, offering a comprehensive approach to making informed technology investments that balance clinical needs, financial constraints, and long-term practice goals.
The Value Proposition Imperative
Medical practices must approach equipment acquisition with a rigorous, objective evaluation process. "I would be disingenuous if I didn't tell you I've made some bad purchases in my day, and they've been driven by emotion," Jebson candidly shares. The key, he says, is to move beyond emotional or impulse-driven decisions and focus on a clear value proposition.
Practices should carefully consider the following when investing in medical equipment:
- Clinical necessity,
- Potential revenue generation
- Anticipated technological lifespan
Navigating Financial Constraints
Equipment acquisition presents unique challenges for smaller and independent practices. Jebson recommends strategic approaches that preserve capital while meeting clinical needs. This approach allows practices to access necessary technology without overwhelming their financial resources, with options to potentially own the equipment after a predetermined period.
"I'm a fan of the leasable agreements, or … limited lease agreements that can purchase that equipment or own it at the end of the lease," Jebson explains.
Compliance and Consumable Agreements
One of the most complex aspects of medical equipment acquisition involves navigating consumable agreements. Jebson warns of potential compliance risks, particularly with agreements that incentivize increased supply usage.
"What we're looking at is an inducement, right? We're saying, hey, we'll give you a great deal if you'll use more supplies," he notes.
Practices must carefully vet these agreements, ensuring they meet fair market value standards and do not create inappropriate financial incentives.
Technology Lifecycle Considerations
Understanding the practical lifespan of medical equipment is crucial for strategic planning. Jebson suggests a general approach of four-year replacement cycles for most technology.
"If we're looking at just the computers for the medical practice, for the front desk and then the staff, a four-year replacement cycle is probably a safe bet," he explains.
Jebson cautions that this can vary depending on the specific type of equipment, with some specialized medical technologies potentially having longer or shorter optimal usage periods.
Academic vs. Private Practice Perspectives
The approach to equipment acquisition differs between academic and private healthcare settings. Jebson highlights the unique challenges of academic medical centers, which must balance financial considerations with educational requirements.
"If you're really fulfilling your mission of being a teaching institution, then you have an obligation to try and expose those students and those healthcare professionals in training to a broad array of technologies," he explains.
Decision-Making Framework
Ultimately, Jebson promotes a consensus-driven approach to equipment acquisition that involves bringing together key stakeholders to evaluate equipment needs objectively.
"Make sure that it's consensus-driven … and that you've got a good consensus of the constituents in your medical practice, and then you're making the most informed decision possible," he advises.
Recommended Next Steps
- Conduct a comprehensive technology audit
- Develop a strategic equipment replacement timeline
- Create a cross-functional decision-making team
- Establish clear criteria for technology investments
Jebson will be speaking on this topic at both the 2025 MGMA Financial Conference in Washington, D.C. and the 2025 MGMA Summit online conference.
Resources:
- 2025 MGMA Financial Conference (April 13-15) - Register Here
- 2025 MGMA Summit (June 3-5) - Register Here
- Visit the Prisma Health website
