How does medical equipment financing work?

What medical equipment financing covers

Medical practices carry some of the highest equipment price points of any industry segment. Common purchases: ultrasound systems ($30,000–$200,000), digital X-ray and fluoroscopy ($50,000–$300,000), CT scanners ($200,000–$2.5M), MRI systems ($1M–$3M+), endoscopy equipment ($30,000–$150,000), EHR systems and hardware ($20,000–$100,000+), and exam room buildouts. Financing structures: equipment loans (you own the equipment, pledged as collateral), equipment leases with residual buyout options, and — for large-ticket items — operating leases that keep equipment off your balance sheet.

HIPAA, FDA, and equipment compliance considerations

Medical equipment procurement involves regulatory layers beyond standard commercial equipment. FDA-regulated devices (imaging, diagnostic, surgical equipment) must be 510(k) cleared or PMA-approved for their intended use — lenders financing FDA-regulated equipment confirm this before funding. HHS HIPAA compliance applies to EHR systems that handle protected health information — cloud-based EHR systems financed via operating lease must have BAA (Business Associate Agreement) provisions in the contract. These compliance requirements don't typically affect loan qualification, but they affect which equipment can be legally deployed and financed.

Section 179 and bonus depreciation for medical equipment

Under IRS Publication 946, medical equipment is 5-year MACRS property and qualifies for Section 179 first-year expensing (up to $2,560,000 for the 2026 tax year, up from $1,220,000 in 2024, per the One Big Beautiful Bill Act). A practice buying a $250,000 ultrasound and $50,000 EHR system can deduct the full $300,000 in year one, subject to taxable income limits. Bonus depreciation, permanently restored to 100% for property placed in service after January 19, 2025, also applies to new and used medical equipment. For large capital equipment like MRI and CT, practices frequently use operating leases specifically to avoid the capital outlay and balance-sheet impact — and lose Section 179 eligibility in exchange for predictable payments.

Healthcare-specialized lenders

Healthcare-practice-specialized lenders understand residual values for medical imaging equipment, the credit profile of physicians and dentists, and practice cash-flow seasonality. These lenders typically offer higher LTVs (80–100% financing on new equipment) and terms up to 7 years for major equipment. The SBA 7(a) program is commonly used for medical practice equipment packages when combined with practice acquisition or real estate — particularly for equipment above $500,000 where conventional equipment lenders may cap out.

Apply at ClearValue Lending

Medical equipment financing requires lenders with healthcare experience. Start at small business financing or apply directly at Find my match — your file routes to the funding partners best matched to it.