As part of its ongoing research in the healthcare sector, Secured Research recently discovered that commercial finance brokers are playing a pivotal role in helping private practices navigate financial hurdles, ensuring they can focus on what matters most — patient care. Here are three insightful examples of how finance brokers have facilitated significant deals for physician practices, complete with feedback from the practices themselves.
- Modernizing with State-of-the-Art Equipment
The need for advanced medical equipment is paramount when maximizing billable revenue opportunities. A notable case involved a broker who arranged financing for a physician’s practice to acquire cutting-edge MRI and CT machines to keep those procedure revenues in-house. This deal was structured as a lease with an option to purchase and a step-up payment structure that matched cash inflows and outflows. The solution offered the practice massive flexibility that was unavailable with the bank’s low interest rate and 90% LTV term loan.
Customer Insight: “Working with our finance broker to secure the MRI and CT equipment has allowed us to expand our diagnostic capabilities and the revenues associated with them significantly. The flexible terms and manageable payments helped us maintain cash flow while upgrading our technology,” the practice manager shared.
- Facilitating Expansion and Specialization
Another impactful scenario involved a finance broker securing a commercial loan for a medical practice aiming to add a new wing dedicated to specialized care. This expansion enhanced the practice’s service capacity and incorporated essential new medical equipment. The combination SBA and a lease solution allowed for a solution that preserved the owner’s cash and compensation.
Customer Insight: “Our broker was instrumental in navigating the complex process of securing a SBA loan and lease for our expansion. Thanks to their expertise, we could focus on patient care and leave our core financial practices undisturbed instead of worrying about financing details,” a partner at the practice explained.
- Refinancing for Better Financial Health
Financial stability is crucial for the long-term success of any practice. In a strategic move, a broker assisted a physician’s practice in refinancing existing debt. Several partners bought into the practice with essentially a leveraged buyout. This left the practice with too much debt and unfavorable structures. The broker solution was a combination of real estate, equipment and SBA 7(a). It reduced their monthly payments and extended the loan’s term, improving the practice’s overall financial health and enabling further investment in patient care.
Customer Insight: “The refinancing solution provided by our finance broker has been a game changer for our practice. Lower monthly payments have given us the breathing room to invest back into our staff and services, enhancing overall patient satisfaction,” the practice’s office manager remarked.
Don’t assume banks have it covered.
By providing customized financial solutions, brokers enable physician practices to overcome economic barriers, adopt new technologies, and expand their services while maintaining financial health. As the healthcare industry continues to evolve and bank credit contracts, the partnership between physician practices and finance brokers will undoubtedly become more crucial in nav
