Risk Management Of Financial Leasing Of Medical Industry

With the rapid development of the medical industry, there are fast growing needs among medical institutions to update their equipments and infrastructure. During the process of furthering China’s new medical system reform, it is not uncommon that medical institutions fail to update their facilities in time and further expand for shortage of capital. Financial leasing is the very new financial method to solve this problem. On the other hand, as the financing and leasing business of China’s medical industry is expanding constantly, the risks it bear amplify accordingly.Risk management of the financial leasing of the medical industry is one core of a financial leasing company. The financial leasing of the medical industry has both the features of finance and industry, which determines that the whole working process of medical projects, involves the risks of financial leasing programs. For financial leasing companies of the medical industry, the priority is to have a profound understanding of the features of financial leasing and its corresponding risk features, establish a sound mechanism to screen, control and manage risks, perfect the risk control system of internal projects, and improve the risk management methods of external ones.This paper introduces the theoretical concepts and the classification characteristics of the financial leasing, and, through summarizing the development status and China’s medical leasing business model, combs the characteristics, development trends, leasing schemes, deal structures and operating procedures of financing, etc. of the medical industry’s financing and leasing business during the new medical reform. It dissects the generating mechanism and types of the risks in the financing and leasing business of the medical industry, namely, policy risks, risks of management and decision-making, solvency risks, collateral risks as well as working capital loan risks. Regarding varied risks, it advances concrete measures on the assessment, control of risks, etc., as well as precautions and practical guidance on medical risks management, and points out the necessity of a close examination of customer qualifications, project quality and creditworthiness. The paper finally gives strategic suggestions on how to strengthen the risk management of financial leasing of the entire medical industry, that is, to perfect the risk control system, construct an early warning system of the financial leasing, improve the internal management and external supervision of operating risks, further innovate the financial leasing industry, and form a method to decentralize the risk management of the financial leasing, which helps provide the medical industry with strategic suggestions on how to control the risks of the financial leasing.The paper also analyzes specific instances from the financial perspective to illustrate the actual factors the lessee has to take into consideration when adopting the modal of financial leasing, and demonstrate the concrete operating procedures to raise funds. By comparing their respective costs and incomes in five years from the lessee’s and lessor’s points of view, it expounds the scale of the hidden risks. Finally, personal recommendations are issued on how to strengthen the risk management of the fund raising of the domestic medical industry.