In these troubled economic times, a regular cash flow can mean the difference between a successful practice and going out of business. Certain aspects of creative financing can help a medical office (or health care provider) create a regular cash flow.
A health care facility is in a unique position to take advantage of creative financing as it has assets and receivables paid by a third party that offer an enticing option for a lender.
Physicians can typically finance:
- Regular receivables to generate a specific minimum cash flow into the practice
- Expansion into a new office or adding new modalities
- Costs of filing with the State for expanded and special services (Article 28, OASAS, OMH Clinics, etc.)
- Purchase of another practice or merging with another group
It is important for physicians to be open to creative strategies in the health care field and aware of what advantages their practice and specialty have to offer. Doing so can help a practice thrive in this heavily regulated industry even in these poor economic times.