The Right Medicine for Medical Practice Loans by Neeraj Bisaria

Medical Practice Loans Are Different than Other Business Loans

Doctors, dentists and other healthcare professionals are held in high regard and generally are highly paid in comparison to other occupations. However, the stereotype of the rich doctor on the golf course every Wednesday afternoon is more the exception than the rule these days. In fact, it takes years for physicians to become financially comfortable. Medical practice loans can be a lifeline to a growing medical office.

TIME magazine reported that doctors’ earnings ranged from $156,000 a year for pediatricians to specialists such as cardiologists and orthopedic surgeons, who earn upwards of $300,000 per year. Starting salaries, naturally are lower. According to Short White Coats, a website that covers a variety of issues facing doctors, the starting salaries for physicians practicing family medicine were $140,000 to $175,000. While this may seem like a lot of money to the average America, young doctors are frequently saddled with student loan debt, which takes years to fully wipe out.

Once student loan debt payments are finished, physicians may look to start or expand their medical practices by securing loans for doctors. Medical practices, like other small businesses, require working capital. Doctors sometimes find themselves in a cash crunch because of slow-paying insurance companies, delays in Medicare and Medicaid reimbursements, and cash-strapped patients who request to string out their payments. These situations can significantly hurt the cash flow of any medical practice.

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