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A “make sense” proposition!

May 15, 2018

A “make sense” proposition!

Many healthcare providers that come to us for commercial loans find the revenue from implementing a new service like Range of Motion and Muscle Testing provides the income they need without a loan (under $100k). For larger loans, they find that by implementing this, they don’t use their Operating Capital for Debt Service. The service costs you and your patient nothing (you make $3-10k/mo based on frequency), improves your level of service, patient loyalty and improves outcomes.

Find out more here: ROM/Muscle Testing Handout

Click for “How to Get Started ROM/Muscle Testing Quick Start Guide”

Financial Trends 1st Quarter 2018

March 3, 2018

Financial Trends 1st Quarter 2018

by: Charles Pope, Certified Commercial Lender

February was a “banner month” for GPA Capital’s funding program. THANK YOU! Yes, we helped many Medical Practices with their Finances, but, we also learned what’s trending in today’s Healthcare Financial Environment and, as promised, we are sharing what’s trending:

  • A large percentage of physicians who “threw the towel in” several years ago, sold their practice and went to work for a larger company, e.g., a hospital, realized that “that” was not a panacea and are re-entering private practice.
  • That being said, the game has changed over the past several years. We can now define the PPR (Potential Patient Revenue) more accurately than ever. This allows the provider to see less patients, provide higher quality of care and receive more income. This allows us put these systems in place for our clients, enabling us to accurately forecast income which, in-turn, is used to demonstrate the physician’s ability to amortize borrowed funds.
  • A much larger “Sales and Marketing” budget is now required. This is not only true for the roll-out, but even in a debt consolidation refinance, the fresh start budget has proven to be necessary to break the mold of the downward spiraling cash-flow.

Why a capital company endorses mobile diagnostic testing?

February 8, 2018

Why a capital company endorses mobile diagnostic testing?

Simple – GPA Capital’s clients have found that implementing it not only improves the quality of their practice, the additional revenue makes it much easier to pay back their loans. With over 25 years of mobile diagnostic testing and hundreds of satisfied physician clients across the country, GPA Capital’s mobile diagnostic imaging partner guarantees Better Patient Outcomes, Continuity of Care, and Increased Revenue.

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7 Facts Primary Care Providers Need to Know About Mobile Diagnostic Testing

1. Patient Comfort and Convenience

Patients prefer the familiar surroundings and service of your office and staff.

2. Patient Care and Control

Physicians maintain supervision of patient care for better Continuity of Care. Quickly confirm or alter your patient’s treatment plan as needed.

3. Patient Retention

Your practice experiences improved patient retention through in-office testing and reducing referrals. Most importantly to your patients, we do everything we can to cover your patient’s deductibles (up to $1,000).

4. Board Certified Radiologists, Neurologists, and Cardiologists

Notable interpreting physicians are experts in their fields and give accurate and timely diagnostic evaluations.

5. Capital Expense Control

This program costs you nothing – no costly outlay for testing equipment, additional staff, or supplies. In fact, you are paid a “Fair Market Rent” of $1,000 every day of testing and you bill for all follow-up visits to review the test results.

6. Clinical Services

A full array of the most valuable diagnostic testing and superior patient service capability.

7. Decades of Expertise

From skilled and compassionate technicians to notable board-certified physicians, GPA Capital and our imaging partner’s management expertise is an invaluable addition to your practice team.

Here’s a quick video explaining the process and how easy it is to begin.

 

To explore adding this to your practice, get started here.

 

 

Chiropractic Care and Diabetic Peripheral Neuropathy!

January 12, 2018

Chiropractic Care and Diabetic Peripheral Neuropathy!

Diabetes is a leading cause for Peripheral Neuropathy, as 60% of those with diabetes will develop this painful condition. Although chiropractic isn’t a cure for Peripheral Neuropathy, it should be an integral part of any diabetic patient’s treatment plan.

“Chiropractic care is an effective treatment for Peripheral Neuropathy because it targets the root cause for a patient’s pain symptoms; we do not simply rely on medication to numb this pain. While chiropractic care is not a ‘cure’ for Peripheral Neuropathy, it is an important part of an effective treatment program.”   Chiropractor Paul Raveling.

Raveling also believes that early diagnosis and treatment may reduce the severity of the motor nerve and sensory nerve damage, as well as help patients with the management of the disease. Therefore, Nerve Conduction Velocity (NCV) and Electromyogram (EMG) testing should be a pivotal part of every chiropractor’s diabetic patient’s treatment plan. GPA Capital writes this into our business plans for our chiropractic clients (PCPs also), as we focus on the top two business strategies 1. better patient outcomes and 2. better practice cash flow.

For this reason we created just published the attached white paper to bring clarity to this subject [click for whitepaper].

Planning a Profitable 2018: A Daunting Task

December 29, 2017

Planning a Profitable 2018: A Daunting Task

strategic-planWhereas Cash Flow is the “life blood” of any business, recording, collecting and analyzing your business’ operations is the “heart.” The goal, always, is Continuity and Diversity of Income. Therefore, successful practices start their fiscal year with a plan that describes the strategic goals of the organization, its financial and other resource needs. Capital partners such as banks may require a formal business plan before approving credit. GPA Capital has developed a Planning Tool to help our followers and clients. You will benefit by reviewing these Top 10 Strategies:

Strategies I: Strategic plan

Strategies II: Budget

Strategies III: Legal

Strategies IV: Finance

Strategies V: Insurance

Strategies VI: Credentialing/Third-party payors

Strategies VII: Facilities

Strategies VIII: Staffing

Strategies IX: Practice Management

Strategies X: Banking Relationship

For further assistance and direction, feel free to complete GPA Capital’s brief Medical Practice Questionnaire at no cost or obligation.[Start Here]

Top 10 Reasons Physicians’ Commercial Loans Are Declined.

December 14, 2017

Top 10 Reasons Physicians’ Commercial Loans Are Declined.

Whether expanding your existing practice, purchasing a practice or planning your exit, at some point you will be planning to borrow funds for your Medical Practice. Each loan is like “going to battle” with a bank. Listening to the horror stories of our clients who have come to us after being shot down for their commercial loan request, we felt that it would help future borrowers to share what we have learned. Below is the short list and attached is the whitepaper.

  1.  Applying with the wrong lender. Simple, but the number one reason.
  2.  Lack strong “compensating factors”
  3.  Can’t properly document your income
  4.  Inexperienced loan officer or mortgage broker
  5.  Your reasons for seeking a long don’t make sense.
  6.  You don’t have a solid business plan.
  7.  The outside conditions are too risky.
  8.  Picked the wrong type of venture or initiative
  9.  Sandbagged by a know-nothing appraiser
  10.  Bushwhacked by new rules

GPA Capital tailors each unique loan for its providers to best serve their needs. Equally as important, we structure the loan package for minimum chance of being declined. Plus, we always have backup plans 2 and 3. Funding to a conclusion is our goal. Please review the material and should you decide, you can get started here.

Art & Science Behind Healthcare Borrowing

November 15, 2017

Art & Science Behind Healthcare Borrowing

Art & Science
Art & Science

As commercial financiers with decades of experience, we recognize that successful healthcare borrowing requires both “art and science.” Unfortunately, many providers don’t understand this and after weeks spent rounding up documents and filling out forms (then more weeks of waiting), 62% of loan applications still get turned down due to inadequate paperwork or poor communication.

Why?

Producing a successful commercial loan package requires 2 different skill sets. In school, most people are either good in English/Creative Writing classes (art) or good in Math classes (science) – or if not good, at least prefer one or the other. However, a successful commercial financier must excel in both.

How?

  • Writing: Clearly summarizing a borrower’s past (especially details surrounding issues like bankruptcy), the current status of the practice and then presenting future goals that lender’s buy into is crucial. Two fundamental rules in writing are “know your audience” and “know your subject.” By having an MBA in Finance and decades as both a commercial loan officer and commercial loan broker, Chuck Pope at GPA Capital has both rules covered. Knowing how loan officers analyze loan packages and the skill developed from writing hundreds of them himself provides the skill required to focus on each application’s highlights and downplay any deficiencies. Like any good biography, the story must lineup with the facts – in this case, the attached financial documents.
  • Math: Analyzing and extrapolating critical data from often thousands of pages of various personal and business financial documents going back years is hard. Then repackaging that data into clear and concise documentation that even the busiest loan officer can quickly find is even harder. By understanding exactly what data loan officers and underwriters are looking for, GPA Capital knows that, with a multitude of loan types and access to hundreds of lenders, with the right financial documentation, there is a fit for almost every situation.

Results?

By working closely with our clients, we craft loan applications that provides the required financial documentation and is framed in the best light possible. The result is a much faster loan with the best rates and terms available.

For more on this subject, get the free PDF Art & Science Behind Borrowing

To begin the loan application process, fill out this Confidential Conference Request.

If you have any questions or comments, please contact us at:

877.247.2776

info@gp-assoc.com

Visit our website

The Existential Threats and Solutions to Small to Medium Practices

October 25, 2017

The Existential Threats and Solutions to Small to Medium Practices

Part 3 of our educational series on Finance for Physicians. Now that you understand the fundamentals we laid out in week 1 educational series and week 2 educational series, our Healthcare Lending Team created the next whitepaper “The Existential Threats and Solutions to Small to Medium Practices”. Enjoy!

How to think like your banker: GPA’s guide to lending

October 17, 2017

How to think like your banker: GPA’s guide to lending

By understanding the fundamentals of how your banker analyzes potential loans, you become a much more formidable borrower. Plus, an educated and knowledgeable borrower is our best client.

Your banker subscribes to the “5 C’s” which he learned in banking school. We put together this informative eBook that is part of a 5 part series to bring you current with the state of the borrowing industry and how you might leverage your resources to improve your practice’s financial situation. The Five C’s Whitepaper, Educational Series 1 of 5. Enjoy!

Understanding Replacement Reserves and Disaster Recovery

September 15, 2017

Understanding Replacement Reserves and Disaster Recovery

Understanding Replacement Reserves in View of Storm Season

  • The topic of replacement reserves is often confusing for medical practice owners:
  • How much should be set aside for replacement reserves?
  • Should replacement reserves be included in net operating income?
  • How do replacement reserves impact cap rates and value?

What are Replacement Reserves?

Replacement Reserves are funds set aside that provide for the periodic replacement of building components that wear out more rapidly than the building itself and therefore must be replaced during the building’s economic life (short lived items).

These components typically include the replacement of the equipment, furniture, hardware, software, file storage and most assets that are part of your practice.

Now, with the advent of hurricane season in the South and East, tornadoes in the Midwest and the myriad of natural occurrences everywhere in between, an “anticipatory disaster reserve” can now be justified. This is all handled within your budgeting process, i.e. Sources & Uses of Funds. 

How much should be set aside for replacement reserves? You should start by working with your insurance agent, what is the “risk rating” in for your area and adjust replacements accordingly. A good rule of thumb is to:

  • Estimate replacement value along with shipping, labor and training
  • Subtract the insurance coverage
  • Add 30 days Gross Earnings (based off your prior years 1120)
  • Include 3X marketing expense to recapture lost market share.

Conclusion

Replacement reserves are an important line item in any healthcare business. Capital expenditures are necessary for Continuity of Income. Yet, many people gloss over the reserves for replacement line item and often exclude it completely from the NOI calculation. The fact is that, if you include it after Earnings and before Tax it will not affect your capitalized value and it will demonstrate sound management and planning which is critical for your sustainability. This is also an excellent time to “put adversity to work for you” and get up to speed with your practice analysis, diversity of income and compliance measures including payment performance programs.