A doctor’s office is generally looked upon as a place where people with illnesses are treated and where lives are saved. That’s true but there’s an equally important side of the doctor’s office – its overheads.
It is as much a business as any other enterprise and it faces uncertainties just like all other businesses with an adverse impact on its cash flows.
When there is volatility in cash flow any business would look for a stable and reliable source of funding to borrow the amount of money that will cover the shortfall in meeting overhead expenses.
When you go to a direct lender for the funds that you require, you most likely expect the cost of borrowing to be affordable, the terms of borrowing to be reasonable, and the approval process to be fast.
The main source of revenue for a doctor’s office comprises insurance reimbursements, patient deductibles, and co-pays.
These are oftentimes the cause of cash flow disruptions in a doctor’s office as insurance claim settlements for some patients invariably run into trouble.
Unless you have a reliable source of funding where you can get the necessary credit whenever required, it can be very difficult to manage the cash flow disruptions.
The cost of running a doctor’s office is high
The overheads in a doctor’s office can be quite high depending on the scale and level of healthcare services being offered there.
Such a healthcare center employs different kinds of skilled and highly skilled healthcare professionals like medical secretary, medical assistant, registered nurse, medical lab technician, radiologist, pharmacist, and health information technician among others.
It is obvious that payroll expenses take up a huge component of the overheads but there is also capital expenditure for real estate, medical equipment, and supplies.
None of these expenses can even be adjusted let alone overlooked for the healthcare center to operate as required.
Hence your application for business funding must be effective enough to get you the funds required to deal with the cash flow volatility.
Doctor’s offices usually have very good cash flow
If you leave aside the insurance claim-related issues that delay payments in a doctor’s office, the revenues are always quite good throughout the year.
The demand for healthcare services is at its highest at the current time with patients having to wait for as long as 25 days on average for a doctor’s appointment anywhere in the country.
It is also a fact that doctors have the highest income among professionals across America but running an independent doctor’s office is a tough call.
Given the nature of services they offer, doctors cannot afford to stall operations even for a day if the necessary funds are not available in quick time.
A stable and reliable source of funding
Hence it becomes extremely important for a doctor’s office to have good working relations with a reliable and stable source of funding.
Cash flow volatility is quite common in a doctor’s office and other preliminary health care facilities. However, they have good overall revenues, and hence regular funding to overcome frequent cash shortages is critical.
Direct Lenders Funding is a top lending company that has lent over $500 million to businesses of all sizes across the country and beyond.