Ambulatory surgery centers (ASCs) are experiencing unprecedented growth, and so is the medical technology that powers these practices. The question that I often get from customers isn’t whether to invest in cutting-edge medical equipment. It is how do we do it in the smartest and most efficient way while remaining patient-forward in our practice? As someone who has spent years helping healthcare providers navigate financing strategies, I’ve seen how the most successful ASCs use capital to thrive in today’s competitive and rapidly evolving landscape.

According to the U.S. ASC Market Report, the industry, valued at $45.6 billion in 2024, is projected to surge 21% to $55.3 billion by 2029. As of this year, 33% of cardiac procedures are likely to take place at ASCs. In addition, hip, knee, and shoulder replacement surgeries also show a continued shift toward ASCs. This fundamentally changes the way we approach specialized care delivery. For ASCs looking to keep up with the latest technology, this rapid expansion brings opportunities and challenges alike.

Today’s ASC operators face a challenging financial reality. Ambulatory Surgery Center Association analysis showed that surgical equipment costs for just two operating rooms can range from $750,000 to $1 million. Such substantial capital commitment can tie up resources for years. Meanwhile, the technology landscape continues to accelerate. Equipment that represents the cutting-edge today may become outdated in less than two years as manufacturers introduce more precise and patient-friendly innovations.

This is why the traditional approach of equipment ownership may limit the growth of your operations. By investing in expensive medical equipment, you’re betting that technology will remain competitive for several years or more. And today, that is simply not the case.

Equipment leasing offers a different value proposition. Rather than committing massive capital to own the equipment outright, leasing allows ASCs to access the latest technology while preserving cash flow with the ability to invest in staff development, facility improvements, or expansion.

ASCs that can offer patients the most advanced diagnostic imaging or surgical tools are likely to attract more referrals and serve more patients. In a market once dominated by large hospitals, ACSs are handing an increasing number of specialized care cases and access to the latest technology is crucial to maintain a competitive advantage.

From a financial perspective, leasing is a predictable operating expense, simplifying cash flow management and offering potential tax advantages through deductible lease payments. Most importantly, the operators can explore upgrades as new technology becomes available and customize solutions that make sense for their business needs in real-time.

Leasing also provides flexibility in an uncertain regulatory environment. As our healthcare system continues to evolve and new reimbursement models emerge, it is important be able to adapt to those changes and adjust your equipment mix accordingly. Leasing agreements can be structured and adjusted to accommodate such developments.

The pace of technological advancement calls for a more dynamic approach to financing. Traditional ownership models still have their place, but if your ASC is looking for financial flexibility and a need to maintain a technological edge, leasing equipment may be a better solution.

In a market projected to grow at 21% annually, with rising patient expectations and a race to deliver better efficacy, your ability to offer best-in-class equipment options can help your center thrive. ASCs that remain nimble, technologically current, and financially flexible can come out on top in this market. And for that, look at equipment leasing as an enabler of sustainable growth in healthcare’s most dynamic sector.

Joshua Shackelford is a Senior Sales & Relationship Advisor at Popular Equipment Finance. He can be reached at jshackelford@popular.com.