Operating a medical office is a noble pursuit and one of critical relevance to a thriving society. People rely on medical offices to facilitate care between patients and doctors, and efficiency and accuracy are imperative when operating a successful medical facility. Given it’s such a vital job, you need to ensure that you always have the necessary supplies at your fingertips, so you can provide the highest level of care to patients. The best small business loans are available to you depending on whether your medical facility is for-profit, non-profit, or government-run.
Financing Options for Medical Offices
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State Funding for Medical Offices
State funding is the primary source of funding for medical offices. Two-thirds of the medical facilities in the U.S. are non-profit, and the rest are for-profit or government-run. While only government-run hospitals are eligible for state funding, non-profit medical offices qualify for tax exemption, which can help to lower overhead costs considerably.
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Commercial Bank Loans
Many medical offices turn toward commercial banks to meet their financial needs. Given the high demand for excellent medical facilities, many banks are eager to provide large loans to assist medical offices in providing the proper care. In fact, in 2011, banks loaned an estimated $1.7 billion to hospitals throughout the U.S. These loans are generally provided to for-profit medical facilities that will be able to generate enough surplus income to pay the loans back. While non-profit hospitals may also qualify, it will be much more difficult for them to repay the loan considering their lack of revenue.
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Nonprofit Lenders
For non-profit medical offices, the primary source of funding is through non-profit lenders that provide grants to medical facilities. The Health Resources and Services Administration (HRSA) is one of the biggest providers of healthcare grants in the U.S. Their mission is to enhance and expand the availability and quality of medical care throughout the country, and they do so by providing regular funding to medical facilities in need.
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Fundraisers
Fundraisers are another popular way to finance non-profit medical offices. Through fundraising, you not only acquire necessary resources to expand your healthcare facility, but you can also educate the community at large and increase awareness regarding the services you provide. Members of the community are often eager to participate, since improved healthcare is something the benefits all citizens.
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Charities
Charities provide a critical funding option for healthcare centers. There are over 81,000 health-related charities in the U.S., so the resources available to you are vast. Many of these charities raise money for specific health problems, while others provide funding for all medical centers in need.
Related: Physician Loans: Mortgages And Other Loans For Doctors
The Bottom Line on Loans for Medical Offices
Running a highly functional and efficient medical office is imperative to the health and wellness of the community at large. To ensure your facility is never short of resources, having access to several sources of working capital for medical facilities is crucial. Fortunately, many non-profit organizations, banks, and charities are eager to lend to medical offices, so they can continue to provide the highest level of care. For all your working capital needs for medical offices, contact Credibly.
