Rentals payable by the NHS Trust are
reduced thus helping
to satisfy best value for money tests.
The capital value of the leased assets
is not counted against
the NHS Trust's EFL allocation.
Leasing allows the NHS Trust to match
the costs and benefits
of an asset over its full economic life.
The NHS Trust can gain certainty over
budget expenditure.
The NHS Trust has immediate access to
new equipment,
which can itself offer cost savings.
Reductions in administration costs can
be achieved.
With an operating lease from a third party lessor, Trusts can potentially recover the VAT charged on associated services from Hill-Rom.
Risks of obsolescence and its impact on
residual value remains
with the private sector.
Operating lease funding is "off balance
sheet" and rentals
are treated as a revenue expense.
