When choosing equipment such as an X-ray system for your veterinary practice, how do you know how much to spend?
Radiographs are used often—even daily—in many veterinary practices. Also, equipment is one of the largest investments a veterinary practice owner will make.
So, maybe a practice owner feels some pressure when trying to select the best equipment for their hospital but also stay within their budget.
Whether you’re opening a new practice or looking to update your current X-ray system, here are some things that may help with the decisions of what to purchase and how much to spend…
How Much Does a Veterinary X-Ray Machine Cost?
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The equipment itself can be a big investment, but it doesn’t paint the whole picture. When calculating the total investment, here are some things to consider…
Which equipment do you actually need? For x-rays, do you require an entirely new system, or do you already have a table and generator that could be retrofitted for DR technology?
How will images be acquired? While physical film is used less commonly in recent years if you do use film be sure to calculate the costs of purchasing and disposing of films and supplies for the processor. On the other hand, when calculating how much a digital X-ray machine costs, you’ll need to factor in the software and acquisition computer for viewing and storing images.
Are there shipping and installation costs?
Is a warranty included, and for how long? If it’s possible to renew a warranty, how much does that cost? Or, is there a maintenance plan available after the warranty expires? What is and isn’t covered under these plans (i.e. drops and accidents, loaner equipment if repairs are needed, etc.)?
What’s the expected lifespan of the equipment? Get input from colleagues if you can. Decide if it’s worth paying more upfront for something that will last longer, and which has an affordable warranty or maintenance plan.
How Much Can a Practice Afford to Spend?
Even experienced, savvy business owners can benefit from consulting a CPA or other financial professional when it comes to working out the budget and figuring out the best way to invest in a large equipment purchase.
When deciding how much your practice can spend on new equipment, it’s important to think about the return on investment, or ROI. Basically, this means using the equipment often enough (and charging enough for these services) to pay off the equipment AND earn a profit.
Calculations and questions to ask may include…
Should you rent or buy the equipment? Many experts recommend buying if at all possible, although the recommendation may vary from practice to practice.
If buying the equipment, will you pay everything up front, or use monthly payments over time? Monthly payments may be offered directly from the seller, or via bank financing. If using monthly payments, what is the interest rate?
How often do you expect to use the equipment? Speak to your veterinarians, vet techs, and other team members to get input on the expected demand for the service—as well as what’s involved with communicating the value of this new service to pet owners.
How much will you charge? Multiply your profit on each procedure (i.e. each x-ray study) by how often you expect to use your new equipment, to see if this fee covers the equipment cost and provides you with additional income.
What sort of staff training is involved, to get everyone up to speed on how to use the new equipment? And is the software, equipment, etc. user friendly? This is important, because these factors may impact how easy it is to integrate the new equipment into your daily practice flow, and whether or not the equipment will actually be used the way you planned.
Are there any tax benefits, such as a Section 179 deduction? These tax savings may help to offset some of your equipment costs.
All in all, a large equipment purchase is a big decision for any practice owner. But by analyzing each factor in the decision process one at a time, knowing your practice style and budget, and consulting with a financial professional, you can make the best decision for your hospital—and hopefully see a great return on investment, all while improving patient care!
Written by: Dr. Tammy Powell, DVM
