How Alternative Funding Can Grow Your Medical Practice

Posted by Karen Erdelac on Feb 2, 2016

How Alternative Funding Can Grow Your Medical PracticeMedical practices may not seem like businesses in the traditional sense because they are so focused on serving the needs of patients, but a medical practice that doesn’t make a profit will not be able to keep the doors open and continue operating.

Many services are provided by medical practices, including patient consultations and diagnoses, medical tests, immunizations, and for some practices, prescription services. Managing these services and working with insurance companies will determine the profitability of the practice.

Costs of Running a Medical Practice

The main costs of a medical practice are office space, staffing, equipment/supplies, furnishings, and software systems. There may be other costs as well, including marketing the practice, malpractice insurance, and taxes. Planning for and managing all of these different costs can sometimes be difficult, especially in the early years of the practice or during times of transition, such as implementing a new system like electronic billing software or electronic health records.

Medical practices can run into cash flow problems or find themselves in need of cash to operate if payments are delayed more than expected. Here are a few scenarios that may leave medical practices short on funds, if only temporarily.

How Alternative Funding Can Grow Your Medical PracticeOne or more insurance companies that you have agreements with unexpectedly deny large numbers of claims due to errors in the way they were submitted, i.e., your staff didn't fill out the paperwork correctly. This happens often because the coding system used changes frequently and is difficult to figure out. Claims can be resubmitted but will take several weeks to a month or more to be reprocessed and paid correctly.

A malpractice claim against you is successful (this can happen even if you did nothing wrong). You must pay the part of the claim that insurance doesn't cover, which can leave you temporarily without operating cash.

You miscalculate how much payroll taxes to withhold and get a substantial bill from the IRS for back taxes. After a few months, threats to take money from your bank account begin to take place. If you pay the bill, you won't have money to operate in the short term.

Alternative Funding Can Be the Answer

When your practice needs cash, you may find it difficult to get a loan if you don't have collateral or your personal credit won't sustain more borrowing. Alternative funding in the form of a business cash advance can give you the cash flow you need to keep operating while waiting to collect payments or other unforeseen expenses. Business cash can also provide the funding for a marketing campaign that will bring in new patients and permanently grow the practice.

A business cash advance is not a loan, At Quikstone Capital Solutions, we provide a cash advance, and in return, receive a percentage of your future credit card sales in return. The payment happens automatically, so there are no monthly billing statements, no invoices, no payment coupons and no checks for you to write. You may qualify for more cash than you think. Apply now to see how much you may qualify for.

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