This Reedview Credit page covers funding for New Bedford, Massachusetts medical practices: exam room build-outs, physician buy-ins and buyouts, imaging, EHR and lab equipment, the lease behind a build-out, the records a practice management system produces, and payroll while insurance claims are pending. A two-room expansion example uses invented figures.
At a glance
- Physician offices with employees
217 (County Business Patterns 2023)
- Physician office payroll
$491.6 million (County Business Patterns 2023)
- Health care and social assistance payroll
$2.54 billion (County Business Patterns 2023)
Medical Practice Loan for a New Bedford, MA Clinic Build-Out: Exam Rooms and Plumbing
A clinic build-out turns a shell or an old office into exam rooms: walls and doors, sinks and plumbing in each room, medical gas where needed, lighting, flooring that can be cleaned, and accessible restrooms. The contractor's bid sets the amount. A term loan suits a build-out because the rooms earn for years, and the equipment that goes into them can be financed alongside it.
Health care and social assistance had the largest payroll of any sector in Bristol County, MA in 2023, $2.54 billion, and the most employees, 40,609 (County Business Patterns 2023).
Physician Practice Loans in Bristol County, MA for Buy-Ins and Buyouts
A physician joining a practice as a partner may buy a share of it; a physician taking over from a retiring one may buy the whole practice. Either way the price comes from a valuation or a formula in the partnership agreement, and a term loan can pay it at closing. A partner reading the request looks at the practice's collections, payer mix, overhead and the buying physician's own income.
- The partnership or operating agreement and the valuation.
- Three years of practice tax returns and collection reports.
- The buying physician's personal tax returns and credit.
- The purchase or buy-in agreement.
Medical Business Loans for Imaging, EHR Systems and Lab Equipment
Ultrasound units, digital X-ray, EKG machines, lab analyzers, exam tables and an electronic health record system are the purchases that fill a practice. Equipment with a resale market can secure its own financing; software and installation may not, so they may sit on a term loan instead. Equipment financing covers the machines.
Medical Clinic Loans and the Lease Behind a Build-Out
When a build-out happens in leased space, the lease shapes the loan. A partner wants to see that the lease runs at least as long as the loan, that the landlord allows the work, and whether the landlord contributes a tenant improvement allowance. An allowance reduces the amount the practice needs to borrow.
Read the lease's restoration clause, which may require the practice to remove improvements when it leaves.
Medical Office Loans: Records From the Practice Management System
Practice management systems produce the reports a partner reads: monthly charges, collections, adjustments, accounts receivable by age and by payer, and visit counts. Those show what the practice earns and how quickly insurers pay. Bank statements and tax returns confirm them.
A practice whose collections lag its charges by a widening margin has a billing problem that a loan will not solve; fixing the billing first makes a request stronger. Pull the reports for the same months as the bank statements, so the two can be checked against each other.
Doctor Practice Loan for Payroll While Insurance Claims Are Pending
Insurers pay after claims are processed, so a practice pays staff for visits it will be paid for later. When a practice adds a provider or a service, the gap widens before it narrows. Working capital sized to the gap, or a line of credit drawn against it, covers payroll until claims are paid.
Working capital loans explains how partners size that gap.
Physician Business Loans Worked Out: A Two-Room Expansion in Invented Figures
Illustration only, invented figures: a practice adds two exam rooms with a build-out bid of $92,000 and $36,000 of equipment, $128,000 in all (our sum). Over 84 months at an invented 9.25% annual rate, the payment lands close to $2,076 a month (our arithmetic).
Two added rooms that let one more provider see patients have to cover that payment from added collections, after the provider's own pay. A projection showing visits per day and expected collections per visit gives a partner something to test.
Bristol County, MA Physician Offices and Health Care Payroll, 2023
County Business Patterns counted 217 offices of physicians in Bristol County, MA in 2023, employing 3,990 people with an annual payroll of $491.6 million (County Business Patterns 2023). 30.9% had fewer than five employees. ZIP 02740 in New Bedford, MA held 14 of them (ZIP Code Business Patterns 2023).
The county also had 233 offices of other health practitioners such as chiropractors, physical therapists and optometrists (County Business Patterns 2023). Dental office loans covers dentists, and the New Bedford, MA page has health care's place among the county's sectors.
By Reedview Credit · Updated
