Physician financing strategies
Typically when physician financing is sought, it is for one of two purposes, either to bridge the gap of short-term cash issues or to explore as part of a growth strategy designed to ultimately add value to a clinic or private office by providing the ability to take on more patients. With regards to shortfalls in cash, and the necessity to cover current expenses while the typical billing process plays out, financing options will typically add interest to the amount that must be repaid, which complicates future operations if no growth strategy is put in place. Ultimately, both needs for financing options exploration involve the same element of needing to be able to service more patients in the future so as to provide a more stable income stream.
Growing a physician practice involves taking on the responsibilities of more equipment, more staff, larger physical spaces and larger utilities and supplies bills. The added risks of growth are usually something that is approached with hesitation by physicians, as the potential compromise of the existing structure are far greater with the added necessary revenues associated with the growth process. Factoring in additional interest on top of any loans that are secured is a very dangerous prospect for small physician’s offices who are already stretched thin, many times causing the discussion of growth to be put off in favor of simply treating existing patients and remaining the same size facility. One aspect of physician financing that is sometimes overlooked during the research process is that of “accounts receivable funding programs” like the ones offered by Med-Care Solutions, whereby a system of ongoing purchases of qualified patient accounts allows the physician to predict more exact revenues and monthly cash on hand by moving the risks of collections and accounting to a third party who assumes responsibility in exchange for a discount on the account value when it is purchased. This situation enables to physician r medical provider to accurately predict monthly revenues, removing the stress and risks of defaults and lengthy collections, and therefore allows for the strategic growth process to be addressed. Once the monthly revenues can be predicted due to ongoing regular account purchases by Med-Care Solutions, which are paid within weeks of filing instead of months or years, a physician can predict the exact number of patients that must be seen and treated in order to break even, as well as how many additional patients must be treated in order to take on the added costs of expansion. With a more predictable revenue collection method in place, growth is no longer a risk but instead is an easily predictable execution strategy.
The hesitations regarding treatments that are associated with many specific types of patients, especially those involved in personal injury cases or worker’s comp cases, due to the lengthy and risky process of collections, are no longer a factor with a physician financing option in place like Med-Care Solutions programs. Physicians can treat qualified patients without the concern of default, due to the risk load being absorbed by Med-Care Solutions as part of the business plan. Even if the account is not able to be collected, the physician is still paid and not held responsible for any repayment nor interest on the account. This allows physicians to easily increase their patient loads immediately, taking the first step toward growth and increased revenues.
The two aspects of growth that any physician or medical provider faces are the process of finding more patients and the ability to treat those increased numbers effectively. Med-Care Solutions can guide you through the process of third-party physician financing programs that will take the mystery out of the process, adding revenues that are guaranteed every month, and providing the added funds necessary to take on the costs of growth. Contact our representatives directly through our website today, and take the first step towards growth that you have been seeking.