Why medical practices are turning to small business loans now more than ever
Members of the medical industry are perceived as having comfortable and super lavish lifestyles. This is totally untrue. The cost of running a medical practice is getting high year over year. Many doctors are waiting months to be in paid in full for services rendered. Many reports also show that doctor/patient relationships are getting more and more complicated due to the fact insurance providers aren’t paying properly. It’s become more and more complicated. Getting paid is painful, and complicated. Many doctors have a build up of pending invoices that simply aren’t getting paid. This is where doctors are turning to lenders like Delancey Street. We provide medical practice loans for practitioners all over the USA. We help them when traditional lenders refuse to lend them money.
Here are some reasons why small business loans are becoming huge for doctors in 2018 and 2019.
Takeover of high deductible plans
High deductible plans are putting more responsibility on patients, many of whom typically had copayments as low as a few dollars. But, according to eVisit.com, the average copayment for doctor office visits is over $100. Some plans are even forcing patients to cover the entire cost of procedures, like MRI’s. Patients however don’t make copayments on the same day as their actual appointment. According to MGMA(medical group management association), 30% of patients leave the office without handling their copayment – which leaves the doctor running a deficit. This is a problem for doctors who typically used to get reimbursed by insurance companies but now rely on patients to reimburse them. Now, they have to chase down patients for money. Many studies have shown that most medical practices have a 5-10% delinquent account rate. The process to get paid can take 50-100 days, which is huge.
2. Competing with urgent care providers
Many medical practices are now competing with urgent care providers that have a lot of money behind them. Many patients are going to urgent care clinics because the clinics offers immediate access to a doctor, more hours, and a simpler payment system. You will rarely hear an urgent care clinic complain about payment related issues – this is because urgent care clinics have a different payment system – and don’t accept copayment. The competition from urgent care providers is crushing medical care providers who can’t compete with their payment terms.
3. Rising expenses
Medical practices are seeing an increase in expenses. Many practices are located in high priced rental properties that make them desirable and expensive. In addition, many medical practices are being forced to go “digital,” due to Obamacare mandates. This means new technology, and new people who have to service that technology. But, reimbursement rates are remaining stagnant, making it difficult for doctors to meet the costs of payroll, technology, and office expenses. Doctors are being forced to do more, but getting paid less.
We help doctors who need money now
Regardless of whether your medical practice is facing expenses due to delinquent payments, or because your cost of operating is higher than your revenue – we can help. We can provide funding for new equipment, new staff, furniture, technology, and more. We specialize in medical practice loans. If you’re waiting on insurance payments, or have financial issues – we can help you. Traditional banks will take months to approve your loan – regardless of how much you need. In contrast, we’ll approve your loan in 24-48 hours. We provide high flexible loan terms, which means that payments can be adjusted based on the timeframe you need.
If you’re in a cash crunch, we can provide a number of financing options, ranging from cash advances, to cost effective small business loans. With us on your side, you’ll never have to worry about money again. We want you to focus on your medical practice, and growing its profitability. We want you to think about the service and medical care you provide. Focus on helping others, trust us to help you with ALL of your business and financial needs.