Larry Stevens 2016-11-15 03:25:49
Reflections on 25 Years
MED ONE CAPITAL, INC. reached a milestone this year: 25 years as an ELFA member company. Equipment Leasing & Finance magazine asked the company’s President and CEO to share his perspective on his association membership and his company.
What has compelled Med One Capital to remain a member of ELFA for 25 years?
Prior to founding Med One Capital in 1991, I worked for several other leasing companies. I actually began my career in leasing in 1967 when I went to work for IDS Leasing. IDS was a founding member of the American Association of Equipment Lessors—AAEL. Since then, every company I have worked for has been a member of ELFA (formerly known as AAEL) and I as a senior leader have been active in ELFA conventions, conferences and events since the mid 1970’s. Th ere are actually very few conventions that I have missed.
I have always made it a priority to maintain membership in ELFA because that is a major factor in demonstrating legitimacy in this business. Almost the first official action we took when we founded Med One in 1991 was to apply for membership in the association. Staying abreast of what is happening nationally and globally is critical to survival in this business and I see no way for a business leader in a dynamic and growing company to stay informed without membership in the association. In my mind, either you spend your time running your business, or you spend your time researching your market and your business environment. ELFA membership allows me to spend my time focusing on the business and yet I still have the luxury of being well informed about the industry and the market.
Additionally, our membership in ELFA has facilitated our ability to develop key business relationships and partnerships that have helped us succeed as a company. I can honestly say that without our membership in the association, Med One would have never succeeded.
To what do you attribute the success of Med One Capital?
Unlike many of the members of this association, we have chosen to specialize in one segment of the marketplace and to further specialize within that segment. Med One has since its inception focused exclusively on financing equipment for healthcare providers. Beyond that, we have sharpened our focus into the acute care hospital world. Th at is where we “live.” We almost never look at a transaction that is not in some way related to healthcare and we seldom do a transaction if the customer or end user of the equipment is not an acute care hospital. While this tends to limit our available market to only about 6,000 possible customers across the United States, it has allowed us to focus and specialize in such a way that I believe we bring true value to the customers we serve.
Our equipment focus is moveable medical equipment and as it turns out that means it is generally critical care equipment that is vital to our customers’ ability to provide excellent care for their patients. Over the years, we have had to learn how to appropriately deal with this equipment and with this customer base. We provide the ultimate in flexibility for the transactions we structure. There are no “canned programs” and we never try to make our customers fit into a box that we have created. We truly approach each deal in an effort to do what will work best for the customer.
This specialization has caused us to diversify vertically within our market segment. Today we have a full service bio-med capability that allows us to service and refurbish equipment that we own and or finance for our customers. We are also able to provide post-warranty service and repair for all of our customers, and we off er same-day, peak-need short-term rental for all of our customers throughout the United States. Th e result of staying in our specialized niche and developing the capabilities that we have is that we are privileged today to be able to serve, in an active and substantial way, over 60% of the hospitals in the country.
Where do you see the equipment finance industry going in the next 25 years?
Aft er 25 years, we’ve lived through a lot of cycles. Presently we seem to be in a cycle where there is more and more money chasing fewer and fewer transactions. If the election turns out the way it is presently predicted, I do not look for a lot of real growth in the economy in the near term. I think that will make it difficult for interest rates to rise. Th at will, in my opinion, perpetuate the current cycle. I suspect 2017 will be much the same as 2016 in terms of growth for the industry. Th at seems to reward the players who are creative, tenacious and entrepreneurial. It is not going to be easy to attain any real growth in the near future. Th at all being said, I can’t think of anything I would rather be doing. I love this industry.
Larry Stevens is President and CEO of Med One Capital, Inc.
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