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3 Useful cash flow tips that doctors must implement in their practice

  • Highlights

  • 69% physicians cited cash flow as their top concern in 2017

  • Leasing equipment to bring down your practice’s capex

  • Clinic management software can reduce employee errors

Inflation and rising cost of medical equipment are increasing input costs for medical practices, resulting in increased pressure of maintaining a healthy cash flow. As per a survey by Capital One Spark Business, 69% physicians cited cash flow as their top concern in 2017. Today, it is imperative for physicians to look for alternate sources of funds to resolve cash flow-related woes due to:

- Late payment of Mediclaim
- Constant replacement of expired medical supplies with new ones
- Changes in taxation structure
Here are three useful cash flow tips doctors must implement in their practice.

1. Lease Equipment Instead of Buying

The cost of medical equipment forms a big portion in the expenditure pie for doctors. The cost of MRI machines can run into several crores. Constant upgradation of equipment further pushes the prices. The cost of a 2MHz ISO Certified Vascular doppler is over Rs4. lakh. Similarly, a 12-channel ECG machine can cost nearly Rs.1 lakh. Medical practitioners can use doctor loans to lease medical equipment, instead of buying them.
This way they can:
- Stay updated with the latest machinery
- Change equipment as per requirements to provide the best care to their patients
Let’s understand the cost benefits of leasing over buying. An MRI machine is one of the most widely-used piece of medical equipment.

Machine Cost of Purchase Cost of Lease
GE 1.5 LX MRI Approx. Rs 96 Lakh Approx. Rs. 10 Lakh for 2 years

Leasing equipment instead of buying can drastically bring down your practice’s capital expenditure. Physicians can use the money saved from leasing for equipment maintenance for smooth operations. They can also use it to expand to newer territories. Hence, leasing equipment through doctor loans helps sustain a healthy cash flow in the long-run and presents growth opportunities.

2. Invest in Clinic Management Software

Separate heads for accounts, patient appointment, inventory management, etc. can result in a significant outflow of cash every month. Now, doctors can invest in a clinic management software that automates key processes such as:
- Billing and accounting
- Inventory management
- Staff scheduling and much more
Depending on the features and whether physicians deploy cloud-based or software-based solutions, a clinic management software can cost anything between Rs.2 lakh to Rs.45 lakh. Medical professionals can easily take care of such costs with a Loan for Doctors that offers funds up to Rs. 30 lakh, with the loan being disbursed in 24 hours.
A one-time investment in such a software reaps huge dividends in the long run and helps practitioners on multiple fronts by bringing down:
- Employee costs by getting rid of unnecessary overheads
- Human errors
A clinic management software, thus, brings efficiency, boosts productivity, and reduces unnecessary cost.

3. Train Employees in Data Security

According to the 2017 Ponemon Institute Cost of a Data Breach Report, the global average for healthcare data breach stood at $380 per record. A breach in any form can significantly affect a doctor's practice, resulting in huge cash outflow to make up for the losses. Hence, it has become imperative for healthcare professionals to train their workforce on data and cyber security.
You could take a Doctor Loan to help you invest in advanced data and cyber security programmes for their existing workforce. According to Bryan Fieker, Sr. Director, Research Services, HIMSS Analytics, "Healthcare organisations must remain vigilant against cyber security threats and leverage all of their resources effectively to ensure every individual knows their role." An advanced cybersecurity training programme can cost anywhere between Rs.4-5 lakh.

4 Tips on how doctors can take their practice to the next level

Avoid Short-term Crunch Through Flexi Loans

Managing day-to-day expenses of a clinic such as procuring the required stocks of medicine, paying vendors and employees on-time, and facilitating advanced care through upgraded machinery are challenges for practitioners. However, flexi loans ensure that doctors get instant access to capital, to fund unforeseen needs, at interest payable only on the used amount of finance and not on the whole loan amount sanctioned. With a Bajaj Finserv Flexi Loans for Doctors, practices can smartly manage their cash flow and save up to 45% on EMIs.

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How loans for doctors help you to offer better healthcare