Working Capital for Healthcare Practices in New York

Three costs that do not wait

Staff

Clinicians, front-desk staff and billers are paid on schedule. Losing experienced people because of a late paycheck is expensive to fix.

Supplies

Gloves, disposables, consumables and lab supplies are ordered regularly and often on account terms.

Space and systems

Rent, utilities, software subscriptions and insurance arrive monthly whether or not claims have paid.

Where working capital sits among options

Working capital is general operating funding. It is best when the need spans several costs at once, which is typical for a practice covering a reimbursement gap. For one specific purchase, such as an imaging machine, equipment financing may fit better. For a recurring need that rises and falls, a line of credit may fit better.

Reading your own cash cycle

1. Pull your last three monthly bank statements.
2. Mark the dates of large insurer deposits.
3. Count how many days pass between large deposits.
4. Compare that gap to your payroll and rent dates.

If a stretch of days without large deposits is longer than your cash cushion, that is your exposure.

What we need

Here is what to expect from us. The range is $25,000 to $5,000,000. We look at about three months of business bank statements, consider FICO scores from 500, and skip tax returns. The application takes around 5 minutes with a soft credit pull, and funding can come in as little as 24 hours. Sole proprietors are eligible to apply.

Please do not include patient information in anything you send.

A worked example, for illustration only

A pediatric practice opens a second office. Build-out, supplies and early payroll might cost $60,000 before the first claims are paid. The need is mostly timing. Numbers are illustrative only, not a quote or typical outcome.

Billing fixes that reduce how much you need

• Verify insurance before visits to cut denials.
• Submit claims within a day or two of service.
• Follow up on unpaid claims at fixed intervals.
• Collect copays at the time of visit.

Each of these shortens the gap, and a shorter gap means a smaller amount of funding is needed.

Not a substitute for margin

Working capital covers timing, not profitability. If the practice's costs consistently exceed its collections, extra cash does not solve the problem. Look at fee schedules, staffing levels and payer contracts as part of the plan. Funding works best as a bridge across a known, temporary gap.

Sizing the amount

A useful way to size working capital is to count weeks, not dollars. How many weeks of payroll, supplies and rent do you want to be able to cover if payments slow? Multiply by your weekly costs, then subtract the cash you already hold. Compare the result to our range, which starts at $25,000. If it falls below, the amount may be too small for this format.