4 Times Your Medical Business Needs Financing
For providing the best medical care, one of the prime requisites is to choose the right mode of finance. Like any other venture, medical practices too need finance to ensure smooth operations and to take the venture to the next level. Here are some signs that show your practice needs capital:
- Woes Related to Cash Problems
According to a survey by Capital One Spark Business, cash flow is one among the two most pressing business issues grappling physicians in 2017. The other is reimbursement for patient treatment. The survey revealed 69% medical professionals citing cash flow as their biggest concern.
In a statement Capital One said, “The biggest expense physicians cited to keep their practice up and running was the cost of salaries and benefits for their support staff, highlighting the importance of the staff across a physician practice and the urgency facing these practices in managing cash flow and revenue.”
Choosing the right mode of finance is important for addressing such cash flow problems. For example, Flexi Loans offered by Bajaj Finserv offers a scalable and continuous source of funds. The borrower can withdraw funds as per his/her requirements and pays interest only on the availed funds. Furthermore, whenever the borrower has excess funds, he/she can pay off the debt in full or in parts. Such loans perfectly suit the dynamic and flexible cash needs of practices.
- Need for Expansion
According to parliamentary standing committee on health and family welfare, despite having the largest number of medical colleges in the world, with nearly 9.29 lakh doctors enrolled, India is lagging way behind WHO’s norms of targeted doctor to population ratio of 1:1000. The numbers state the wide gap in the demand and availability of quality medical care in the country. This however, is a huge opportunity for medical practitioners to venture into this huge and mostly untapped market.
When you expand your medical business, you need funds for:
- Setup infrastructure
- Buy new equipment
- Hire people
- Comply with regulations
While expansion is one part of your medical business, boosting efficiency and staying relevant require investments in specialised equipment and technology. Accessing hospital records system securely, connecting with patients anywhere, monitoring the care given 24X7, etc. play a significant part in enhancing efficiency.
The following statistics show us how investment in advanced systems like Electronic Health Records (EHRs) enhances efficiency manifold. According to a national survey of physicians:
- 79% providers cite that use of an EHR helps them practice more efficiently
- 82% report that e-prescribing saves time
- 75% report receiving lab results faster
It significantly reduces the amount of time spent on paperwork and administrative tasks, thereby making operations lean.
- Spend on Training Staff
While new technology bolsters efficiency, your staff holds the key to utilise it to the fullest. Training staff to use new equipment, tackle emergencies, handle complex cases, etc. is vital to remain competitive and offer quality care.
On an average, doctors in India spend a little over 2 minutes to diagnosis a patient. Trained medical staff with the latest technology helps reduce the time spent on each patient and increase the diagnosis accuracy.
One of the most effective ways of staff training is through mobile virtual devices such as VR One, Gear VR, and Google Cardboard. According to Dr. Narendra Kini, CEO at Miami Children’s Hospital, “The level of understanding through VR is great because humans are primarily visual and VR is a visual format. We believe that there are numerous opportunities where repetitive training and skill set maintenance are critical for outcomes.”
We, at Bajaj Finserv, offer business loans for consultants and practicing doctors looking to expand operations or have a business need to provide better treatment facilities. We offer working capital loan up to Rs.30 lakh at a competitive interest rate. Talk to our loan experts today to know more.