Don't Let Loan Debt Strangle Your Practice
Although his practice was running very well, his debt payments-which totaled $173,124 a year-were smothering his business and personal life. No matter what he did to improve his office efficiency, he still found himself scrambling each month thanks to this mountain of debt.
The fix? By taking time to analyze the debt and consolidating it into one long-term 15-year loan, Dr. X was able to lower his total debt payment from $14,427 to $3,923 a month. (Not to mention he lowered his blood pressure, too.)
"So many physicians lease equipment nowadays, with lasers being the most common, and with leases there are such hefty pre-payment penalties that these poor doctors are paying every cent of interest on this equipment," Biro says. "We come in and offer them a loan instead of a lease that provides flexibility. When the return on investment is strong on the equipment, which it usually is, the loan allows them to pay it off quickly and save so much over the term of the loan."
Physicians and practice managers often assume that leasing is the only option for obtaining equipment, but Biro says loans are almost always available. Even though a lease might seem more attractive due to a lower monthly payment, being able to pay off a loan early and avoid much of the interest can greatly alter the cost picture.
Biro also encourages physicians to look at the number of loans and leases that are currently held by their practice.
- Resisting the Healthcare Consolidation Frenzy
- Give Nurses in Wheelchairs a Chance
- New G-Codes to Pay Doctors for Broad Array of Non-Face-to-Face Care
- 3 Better Ways to Market Bariatric Surgery
- HL20: George Halvorson—Expectations for Success
- Top 3 Health Plan Game Changers of 2013
- MGMA Urges 'End-to-End' ICD-10 Testing
- Scary Financial Challenges for 2014
- MU Compliance Announcement Sparks Concern, Confusion
- Q&A: Ardis Dee Hoven 'Optimistic' SGR Will Be Repealed