In the broadest terms, healthcare is the only industry where the service provider does not set the price which, for the most part, is determined by the government or health plans.

 

The physician community also has a much taller hill to climb than other professions in terms of revenue cycle management. Invoices are typically paid over a period of time by a number of different parties in a number of different ways from cash and credit cards to health savings accounts.

 

The primary physician furnishing exam rooms has different capital financing needs than the dentist purchasing costly imaging equipment and instruments. A banker who specializes in healthcare would understand that while the dentist may be seeking the larger loan, he or she also has a greater percentage of private pay collections.

 

Many financial institutions offer specialized solutions to the physician community to meet evolving needs:

 

Revenue cycle management: BankUnited is among those that offer cloud-based applications that allow practices to treat every financial encounter the same – Medicare, Medicaid, insurance and private pay – and then have the collections automatically posted to the bills with a lower error rate. Consequently, office staff is freed from coding and data entry to manage the few exceptions.

 

Online treasury management: Secure web-banking platforms offer 24/7/365 accessibility to view account activity in real time and automate many bookkeeping functions. Lockbox services that process deposits and transmit remittance data can be combined with revenue cycle management platforms to accelerate collection, improve velocity of cash flow, reduce errors and maximize efficiency.

 

Founding and acquisition: The State of Florida’s 2017 Physician Workforce Annual Report noted that six in ten physicians practicing in Florida are age 50 or older. Statewide, an average of 15 percent plan to retire in the next five years with that number reaching up to 25 percent in South Florida. Bankers with expertise in the field can explain and facilitate loan options for new practices as well as acquisitions.

 

Transitioning to private pay: What was once a small movement in affluent zip codes, so-called concierge or private pay practices are heading mainstream fueled in part by the increasing prevalence of high-deductible plans and challenges in co-pay collections. If a practice has current financing, a shift to this model may be deemed a material change in the terms of the loan and the lender should be informed. A practice may also need to finance the transition period before new collections begin.

 

Entrepreneur or employee: One of the biggest changes I have seen over the years is not in financial products but in physicians themselves. Years ago, my clients viewed themselves as small business owners in competition with fellow physicians. Today, there is more importance placed on personal work-life balance and collaboration in practice. Many physicians express no interest in owning a practice. There is no right answer. Banking products can finance wonderful vacations as well as physician-owned ambulatory surgical centers.

 

Professional referrals: Yes, bankers give referrals too. My clients tell me about the challenges they face and, while I can be of no help with clinical issues, I can refer them to a wide network of qualified billers and coders as well as other vendors who can help with non-bank issues.

 

Those of us who specialize in healthcare are always willing to offer a free checkup and will work with you to help you reach your financial goals.