Funding for New York Healthcare Practices

Services delivered now, payment received later

A clinic books a visit, delivers care and submits a claim. The money comes back after the insurer processes it, sometimes with a denial or a request for more information that restarts the clock. In the meantime the staff are paid on schedule, the lease is due on the first, and supplies are reordered. That delay between care delivered and payment received is the central cash problem for most practices, and it grows with the number of patients, because more visits means more unpaid claims at any given time.

The effect is largest for practices that are growing. Adding a provider or opening a second location raises costs right away, while the claims that pay for them take weeks to turn into cash.

What a growing practice pays for first

1. Clinical and front-desk payroll. Paid weekly or biweekly regardless of when claims clear.
2. Space. Build-out, leasehold improvements and rent for a new exam room or office.
3. Equipment. Diagnostic, treatment and sterilization equipment, plus the software that runs scheduling and billing.
4. Supplies. Gloves, disposables, medications and lab consumables on a running order.
5. Credentialing time. A newly hired provider may see patients before every payer has finished enrolling them, which delays payment for early visits.

Two ways to think about the gap

The recurring lag

If every month the practice floats a few weeks of unpaid claims, the amount floated rises as volume rises. A funding amount that covers a typical float can steady payroll without changing how you operate.

The one-time purchase

A piece of equipment, a renovation or a second location is a separate cost. Treat it on its own: what will it add per week, and how soon will it pay for itself?

For illustration only: if a practice floats $50,000 of unpaid claims in an average month and wants to add an exam room that costs $30,000, it needs to consider both items, because funding the room from a cash reserve already used for payroll leaves no cushion if a payer slows down.

Questions to ask before choosing an amount

• How many days, on average, pass between a visit and payment?
• What share of claims are denied or pended on the first submission, and how long does rework take?
• How many weeks of payroll and rent do you carry in unpaid claims at an average moment?
• If you are adding a provider, how long until their schedule is full?
• Is the purchase you are considering a replacement or new capacity?

Answering these gives a more grounded number than a round figure. Practices that know their billing cycle can state the size of their float quite precisely, and that is a good starting point.

Who this applies to

The category covers a broad range, including primary care, dental, physical therapy, mental health, optometry and specialty offices. Each runs differently. A dental office may collect a patient share at the visit, while a therapy practice may depend more on insurer payments. Review your own receivables rather than assuming a general pattern.

You can apply for $25,000 to $5,000,000, with funding in as little as 24 hours. FICO 500 and up are considered, and we ask for about three months of business bank statements. No tax returns are required, the application takes five minutes and uses a soft credit pull. Sole proprietors, including solo practitioners, can apply. Apply here.