Physician Financing Options When Growth Is Necessary
Dr. Kamran Abdo understands the growth progression of medical facilities, a pool of knowledge he acquired through years of facing the identical problem that many clinics, surgery centers, hospitals and offices face, one of pooling enough free cash to not only cover monthly expenses, but additionally to pay for the expenses involved in expansion. When Dr. Abdo founded Pacific Family Clinics in 1992, the increases in patient numbers quickly made it necessary to consider hiring more staff, purchasing more equipment and potentially expanding the physical space. All of these things cost money over and above the typical cash necessary to treat patients, and the typical situation of patients owing money for treatments that has not yet been collected vs the ongoing outlay of cash necessary to keep the lights on provided the necessity so seek physician financing options. What Dr. Abdo encountered made him realize that the need for alternative physician financing options was a necessity within the industry.
The financing options that are available to physicians typically comes in the form of loans through lending institutions. These loans are not a good fit for the medical industry due to the fact that they will usually only be granted if physical collateral is available in the form of machinery or other assets which can be seized if the loan cannot be repaid along with interest that accumulates. This does not take into consideration a few important aspects of the medical profession that make it relatively unique to the loan process, first that the most valuable asset that many physicians have is the accounts receivable, and second that the risk of the repossession of equipment renders the clinic unable to function and therefore repay the loan in the future. Because the normal accounting processes of a physician’s office involve large amounts of cash being owed by patients or their representatives to the office for treatments that have already been performed, the minimization of defaults on these payments through speedy collections becomes the primary focus. As the accounts age, they statistically have a lower and lower rate of successful collection, and this risk will generally create an unwillingness on the part of traditional lenders to use accounts receivable as an asset which can be borrowed against. This ties the hands of the physician seeking funding, as they cannot risk equipment loss, and they do not have cash on hand to fund expansion themselves.
Dr. Abdo formed Med Care Solutions in order to present physicians and other medical care providers with financing options beyond the traditional ones. Through their specialized programs that involve purchases of the collections rights on medical accounts receivable, Med Care Solutions allows physicians to turn their accounts receivable into immediate cash without the risks associated with collateral and interest. Med Care Solutions staff analyzes accounts for underwriting purposes and then purchases the qualified accounts outrights, leaving the physician to no longer need to employ a collections department in association with the account. It is paid directly to the physician as if the patient paid it themselves, and the risk and responsibilities are shifted away from the clinic as a result. Join the growing number of physicians and medical providers who are successfully utilizing Med Care Solutions programs to generate income guarantees of payments that can be used to expand their practices, pay their existing bills, or for whatever reason they choose. Contact Med Care Solutions today.