Starting and establishing your own medical practice takes much more than knowledge and extensive training. When you start your own practice; you don’t only have to adhere to the needs of your patients but also manage your business. You have to play the role of not only a medical health provider but also an efficient entrepreneur. If you plan on starting your own practice you must be confident about your profession but what about being an entrepreneur?
Managing funds is one of the most crucial aspects for being the latter i.e., an entrepreneur. You cannot solely rely on the fees your patient pays to keep your health care facility running. How do you get continuous capital flow then? Fret not, there are several services providing loans to support your dream. Let us look at the few prominent types of loan alternatives available for the same:
- Traditional lenders- Traditional lenders are a good option for individuals wanting a long-term loan. The process of application is arduous and the time required for the loan to reach you is longer too. To be liable for the loan, you need to possess a proven track record of income, a clear business plan, and possible collateral to back up the loan, including putting up your own personal assets. For urgent requirements, this is a very time-consuming and non-feasible option.
- Small Business Administration (SBA) loans– SBA is an American government agency that assists small businesses. One of their services is rendering loans. Getting qualified for a loan has become challenging since the financial crisis of 2007-2008. The application and receiving process is very time consuming and intimidating. Some agencies, however, simplify the process for you and let you avail a small business loan
- Alternative lenders- Alternative lenders specialize in providing loans of smaller amounts and pose limited restrictions. Many of these also offer medical equipment leasing which can save your expenditure on instruments.
Once you have the finances under control, you can proceed with understanding the uses of medical financing. Here are 5 ways by which medical practice financing can elevate your business-
1. Hire proficient staff
Healthcare is a fragile matter. Ill-treatment can put you through a medical malfunction trial. You can’t run your practice solo; you are going to need a team of professionals who are very efficient in their work. Possessing low finances can compel you to hire less proficient and non-deserving candidates; since they are all you can afford. But remember, your team greatly represents you. The team forms a crucial segment of the functioning of an organization. You can’t push yourself to multi-task and neglect the complete attention that your patient needs. With sufficient capital, you can recruit only the best and make sure you get superior functionality and overall growth.
2. Manage cash flow
When running a medical practice, you cannot rely on the fees of your patient. The frequency of patients cannot be determined; additionally, the patients may be users of medical insurance. Today, everyone is aware of the exorbitant medical charges and most people have medical insurance to cover their health costs so they avoid the sudden monetary strain. This, however, might not be advantageous for you as a medical health professional since you can’t determine when exactly the insurance shall reimburse the patient costs. At such times, if you rely on the patient costs, you might end up in a troublesome situation. You need to pay for your office lease, staff, equipment loans, and other expenses. Having a basic amount of funds that are not dependent on other factors can help you deal better.
3. Cover taxes
Taxes for medical practice can be unpredictable. You might evaluate and come up with an estimate but you can seldom get all the calculations right. If a nasty surprise pops up, you shouldn’t have to be distressed. With funds available, you can cover all the taxes rather than risking penalties.
4. Lease medical equipment
Medical equipment can cost you a fortune. If you are starting your own practice and aren’t yet established; leasing is a very good option for you. You become the sole owners till you keep paying for the instruments. Equipment includes diagnostic equipment, surgical instruments, medical lasers and ultrasound systems, wheelchairs, beds and stretchers for your clinic. As mentioned above, specific medical financing also provides for leasing these.
Like any other business; you need to employ marketing strategies to attract patients to your service. This is especially true in the beginning years of your practice. Digital marketing through social media, SEO; outsourcing the management to a professional will require you to invest, the costs of which can be covered by medical practice financing.
As you start getting established, you might have to refurbish your office setting; renovate and update the furniture and décor thereby creating good first impressions and enhancing the comfort and confidence of your patients. You also might have to expand into other services to provide integrated treatments to your patients. And without financial aid, all of this is quite impossible.