Like any other venture, medical practices also need finance to ensure smooth operations and take the practice to the next level. Here are some circumstances when your practice needs capital:
1. Working capital crunch
Capital One Spark Business surveyed physicians to research the pressing issues faced in practising medicine in 2017. 69% of medical professionals cited cash flow as their biggest concern, followed by reimbursement for patient treatment. The increasing cost of rented spaces, utilities, medical equipment and supplies, payroll, etc., can strain the cash flow of medical practice.
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.'
Having the right source of finance for addressing such cash flow problems then becomes essential. For example, Flexi business loans for doctors by Bajaj Finserv are designed to help doctors meet such unplanned cash crunches. With its unique feature of ‘borrow as you need, prepay as you can’, doctors can withdraw funds per their practice requirements and pay as and when they have excess funds. Furthermore, interest is chargeable only on the availed funds. Such loans perfectly suit the dynamic and flexible cash needs of practices, which can’t be exactly anticipated.
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2. Need for expansion
According to the parliamentary standing committee on health and family welfare, despite having the largest number of medical colleges in the world, only about 1.2 million doctors were registered with the Indian Medical Council in 2020, according to Statista. This states that 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:
- Set-up infrastructure
- Buying new equipment
- Hiring people
- Complying with regulations
Here too, a Baja Finserv Loan for Doctors in a Flexi format helps you to withdraw per your expansion phase and needs while saving you up to 45% on your regular EMIs. With these loans, you pay interest only on the amount used by you and not on the entire sanctioned amount. Furthermore, you also have an option to pay only interest as your EMIs and repay the principal at the end of the tenor.
3. Improve efficiency
While expansion is one part of your medical business, boosting efficiency and staying relevant require investments in specialised equipment and technology. Accessing hospital records systems 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.
Doctors can easily invest in such technology with a business loan for doctors that comes with a high loan amount of Rs. 50 lakh and a 24-hour disbursal.
4. 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 diagnose 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.”
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