Physician Financing And Assets
One of the most unique traits among service professions is the fact that in the times when doctors, medical treatment facilities and physicians need to expand due to increasing demands for their services, they find it difficult to secure financing to do so. This is due to the fact that physicians have a payment setup that is not favorable towards securing traditional financing, in that they will typically be dealing with some form of third party which will be paying the bills of the patients. Very few patients have the ability to pay for medical care out of pocket, especially in the case of more expensive treatments or surgeries, so the payments for services rendered are usually taken care of by insurance companies or settlements against another individual. In the cases of physicians who treat accident patients, this can be an extremely large portion of the accounts receivable. Since many of these cases would involve patients who need a favorable settlement in order to cover the bills they have piled up in treatment, the actual guarantees that the medical provider will be paid are few and far between. Due to a lack of ability to guarantee that these accounts receivable will be able to be collected, many financing institutions will not consider accounts receivable as an asset which can be borrowed against in order to expand the facility. This catch 22 puts physicians and doctors in a unique position of needing to expand due to increasing patient loads, yet unable to secure the money to do so because they cannot show anything on paper except for fixed assets. Few physicians are willing to risk their equipment to get a loan, so they continue to struggle in accommodations or staff that is not adequate for their current patient loads.
Physician financing options that are considered “alternative” include medical accounts receivable financing, in which the physician sells the rights to collect on the accounts receivable on their books, in exchange for a modest discount. This financing option provides all of the money necessary to cover expansion efforts, without the need to actually “borrow” the money. Instead, the money which has already been earned but which is sitting on the books as uncollected is immediately secured by the physician as a payment from a financing operation like Med-Care Solutions. In this scenario there are no interest payments, no collateral and no risks to the facility as the money that is collected is not required to be repaid if the account is not able to be collected upon. All of the risks of collections are diverted away from the physician, which allows your office to collect the money that is owed to you at the time you need it. This also allows physicians to plan for future earnings by knowing exactly how much revenue will be coming in within any month, dictated by the amount of patients served. The physician financing options provided by Med-Care Solutions are far superior to traditional loans, and do not require you to jump through hoops and risk your business to get it. Simply call our representatives today.