Healthcare Practice Funding in Richardson, Texas

The reimbursement lag, in plain terms

A healthcare practice delivers care first and gets paid afterward. A claim goes to a payer, gets reviewed, sometimes gets sent back for corrections and eventually pays. The staff, rent, supplies and malpractice premiums have already been paid. That timing gap is the cash-flow problem in nearly every clinic, regardless of how busy it is.

Richardson, a Dallas suburb of 119,469 residents at the 2020 census, hosts independent physicians, dentists, therapists and specialists who serve its neighborhoods and nearby areas. The Richardson business funding page describes the wider business base.

Three kinds of practice, three kinds of gap

Solo or small group clinic

A two-physician practice has a front desk, a medical assistant and a billing person. A denied claim or a slow payer hits payroll fast because there is no large pool of revenue to absorb it.

Dental office

Patients often pay at the visit, but a new operatory, imaging equipment or sterilization system is a lump-sum purchase that precedes the production it enables.

Therapy or specialty practice

Visits are frequent and each is small. Cash comes in as a long stream of modest payments, which makes a delayed batch of claims easy to feel.

An illustration of the float

For illustration only: a practice bills $60,000 a month to insurers, and payment typically arrives about 45 days after the visit. At any moment, roughly a month and a half of billings, in this example about $90,000, is in transit. Payroll and rent do not wait for it. These numbers are made up to show a mechanism and are not our terms or a typical result.

Growth makes the float larger. Adding a provider increases billings, but also the amount in transit. Practices often find that the month they expand is the month cash is tightest.

Hiring ahead of revenue

Adding a nurse practitioner, hygienist or therapist is a cash decision as much as a clinical one. The new provider's salary starts on day one, but credentialing with payers can take time before claims are paid, and a new schedule takes weeks to fill. In that window the practice is paying for capacity it has not yet monetized. Owners who plan the expansion usually map three dates: when the hire starts, when the provider can bill, and when the first insurer payments land. Working capital is sized to the distance between the first and third.

A practice that skips this math sometimes responds by delaying vendor payments or trimming supplies, which creates its own problems. Naming the gap in advance keeps the decision a planned one.

Equipment and build-out

• Imaging, exam-room or dental chairs and instruments
• A second location or added treatment rooms
• Practice software and records systems
• Marketing a new provider before the schedule fills

Compare structures on our equipment financing and business line of credit pages.

What to bring to the decision

Know what you need and when revenue from it starts. The application takes about five minutes with a soft credit pull, and funding ranges from $25,000 to $5,000,000. Sole proprietors can apply, which includes solo practitioners who file as an individual. Start your application.