Physician financing options
Physician financing options
In the typical lifespan of a business, there gets to be a point where expansion is necessary in order to continue to provide a good customer experience for a growing group of clients. Simply purchasing more equipment, hiring more staff or securing a larger location can be a difficult decision for many business owners because of an uncertain future with regards to sales. Will you continue to have enough business to sustain the increased costs associated with the larger operation, and will you also be able to absorb the interest fees on the loan that was necessary in order to expand? Medical providers face these same types of issues, and the traditional loans against their fixed assets can make these decisions especially complex because a repossession of the equipment would render you out of business completely. The risks are high when you are considering expansion, and medical providers are not exempt from these problems.
Medical providers do have an advantage over typical businesses with regards to financing, however, in the form of physician financing programs through third party finance houses like Med Care Solutions. Within these types of physician financing programs, medical providers are able to more effectively control the collections aspects of the business by ensuring payments for accounts receivable directly from the finance entity, removing the risks associated with collections from the patient directly or the legal firm representing them. Additionally, the physician can utilize this program to build a larger pool of patients, as they may have previously been hesitant to treat specific types of cases (generally personal injury, car accident or worker’s comp) due to the default risk. Instead of minimizing risks by not accepting these types of patients, the physician can now pass collections responsibility off to Med Care Solutions in exchange for immediate payment for the account. These types of guarantees are few and far between in a typical business finance situation, and give smart physicians an advantage towards growth potentials.
Interestingly enough, the same type of relationship between the financing house and the physician can be utilized to generate short term cash that may be needed to cover expenses in circumstances where cash has fallen short for the month. Physicians are asked to front the costs of treatment many times, providing a wide plethora of different procedures that have costs associated with them, yet only being reimbursed for those costs once a settlement has been reached. Hardships happen when the money owed through accounts receivable does not materialize into actual payments to enough of a degree to cover the ongoing costs of the facility. As opposed to waiting and hoping that the bill collectors will be lenient until the payments are collected, many smart physicians are pro-actively setting up Med Care Solutions accounts which can be used to sell existing accounts receivable when necessary. These approved accounts represent immediate cash for the physician which can be used for any purpose, and have no repayment requirement if they are defaulted upon. It is exactly like the collections department making a phone call and eliciting an immediate payment from the patient. Contact Med Care Solutions today to learn about the physician financing programs that are helping so many others solve the critical issues facing medical facilities today.