Pursuit of Healthcare Financing: 5 Important Factors to Consider

3-Feb-2016

Healthcare professionals and organizations are pursuing financing solutions for many purposes. If you are considering whether to obtain healthcare funding for yourself or your organization, here are five important factors to consider before beginning the process.

1. Funding is available to anyone. Obtaining a loan is not just for large organizations. There are lenders that cater specifically to smaller organizations, such as ambulatory surgery centers, pharmacies, clinical labs and medical groups, and even individual healthcare professionals, including physicians/surgeons, pharmacists and advanced practice registered nurses. These lenders may actually be a stronger lending option for smaller organizations and licensed healthcare professionals than a lender that caters to primarily to large organizations.

2. Financing has many uses. There is often a belief that healthcare organizations should only apply for a loan is when planning a substantial investment in the organization (e.g., building expansions and renovations). That is far from the truth.

There are numerous instances when an influx of capital can help a healthcare organization or professional, including commercial debt consolidation, capital expansion projects, startup expenses, refinancing, software and equipment upgrades, funding a captive insurance program and boosting emergency cash reserves.

3. A wide range of loans are available. Many lenders require organizations to obtain a loan of at least hundreds of thousands of dollars, but not all. There are companies that provide an array of medical financing programs with limited funding requirements and substantially lower loan minimums. This allows organizations and professionals to apply for loan amounts that make sense for their purpose.

4. There are alternative lenders to banks. Most banks provide loans, but a bank is not the only option from which to receive healthcare funding. There are firms that not only provide medical financing but are able to develop more focused, customized programs that meet the day-to-day challenges faced in today's healthcare environment. These companies often allow you to apply online at your convenience, freeing up your time to focus on what really matters most.

5. Do your due diligence. With options for lenders and terms to loan amounts, organizations and professionals should take the time to research their financing options. Failing to conduct due diligence could result in partnering with a bank or firm with a slow approval and funding process and/or receiving a loan that includes unnecessary fees, high interest rates, an unreasonable term length and other questionable — and unnecessary requirements.

In addition to researching loan providers, healthcare business owners and individuals may want to prioritize identifying those companies that provide flexible, innovative funding programs tailored for the healthcare industry and, more specifically, for their organization's type and size or profession. It will be easier for business owners and professionals to discuss their financing needs with — and have those needs met by — a company that has expertise in healthcare. This understanding of and experience in the healthcare industry should allow the company to put together a financing program that will truly meet a business owner's or professional's specific needs and objectives.

Jeff Blankinship is co-founder of Surgical Funds, a new firm that facilitates medical financing alternatives for licensed healthcare professionals and business owners. In partnership with the nation's premier funding partners, Surgical Funds offers a variety of fast, hassle-free financing programs that can be accessed online at www.SurgicalFunds.com.