- Why did you form Surgical Funds?
Several key Surgical Notes clients, including ASC physicians and owners
and leaders of top management and development companies, expressed frustration
with the difficulties experienced when attempting to access funding for
de novo projects, operational capital and equipment purchases, and buying
into new partnership opportunities. Surgical Funds was created to respond
to these needs by eliminating the hassles associated with traditional
commercial lending programs. We provide a service that offers competitive,
flexible financing programs tailored to meet the unique needs of the healthcare industry.
Many physicians and organizations are upside down with their credit and
debt-to-income ratios, have a low FICO score, or face other challenges
that make it difficult to raise capital quickly. Surgical Funds delivers
fast, customized solutions designed to meet these challenges and others
that are unique to the healthcare industry.
- What services does the company provide?
Surgical Funds provides multiple options for funding from various lending
partners, financial institutions, national and local banks, family offices,
private equity, and more. There are seldom two deals which are exactly
the same. At Surgical Funds, we work to provide healthcare professionals
with multiple, flexible financing options so they can secure the funding needed.
- What are some of the reasons healthcare professionals need financing?
There are various reasons when healthcare professionals may want to consider
a capital loan. Perhaps their facility is experiencing reimbursement delays
due to the transition to ICD-10 or they would like to consolidate or re-finance
commercial debt. In order to remain competitive in today’s healthcare
industry, healthcare facilities need to upgrade their equipment or software
periodically, and this requires capital. Surgical Funds also provides
specialized healthcare financing for de novo development, real estate
purchases, and practice acquisitions as well as physician loans for tax
payments or to fund a healthcare captive insurance company.
- What are the biggest obstacles faced by healthcare professionals when seeking
One of the biggest obstacles faced when seeking capital is not knowing
your options, which includes identifying available lenders. There are
several ways to be creative when it comes to securing funding which are
not in the typical wheelhouse of traditional banks. The first place a
physician will typically to turn for financing is a local bank or national
commercial lender. Inquiries at these institutions can result in the physician
receiving a lowered credit rating, and the bank may ultimately turn down
the physician's loan application for any number of reasons. Additionally,
traditional lenders often have unexpected out-of-pocket fees and hard
collateral requirements as well as long turnaround times. These are all
avoided with Surgical Funds customized healthcare financing solutions.
- How can working with financiers help healthcare professionals reach their
ultimate professional goals?
Financiers, particularly those with healthcare expertise, understand the
needs and desires of the deal at hand, which will often require creative
and sometimes alternative financing to achieve the desired outcome. Growth
through responsible financing helps healthcare entrepreneurs to reach
their ultimate professional goals.
- What are the biggest misconceptions you see among healthcare professionals
when taking on and managing debt?
One of the biggest misconceptions is that while your practice or facility
may gross a lot of money, this does not ensure that you will be financed.
Many times the debt-to-income ratio is upside down. Couple that with a
poor credit score/FICO and it will be difficult to secure favorable funding
with traditional lenders.
- What are the smartest things you're seeing physician entrepreneurs
do to manage and invest successfully?
Due diligence and more due diligence! Healthcare entrepreneurs owe it to
themselves to research all available physician loan programs and healthcare
financing options available. In the long run, tailored solutions will
be the best fit.