New laws and regulations in the health care industry are forcing some doctors to make changes in where they practice medicine. They may be tempted to seek employment at a different hospital, join a medical group, or even open a solo practice. But all of these options require substantial startup costs and/or overhead expenses – which can be difficult for physicians who are trying to build up a new patient base.
One common approach for health care practitioners trying to make this type of transition is to obtain a physician income guarantee. TriCPS has amassed years of experience in pairing doctors with guaranteed physician compensation options that help them gain their footing in the market so they can build a flourishing practice.
What Is a Physician Guarantee?
A physician income guarantee can be sought from a hospital, physicians’ group, or other health care provider (and sometimes from an insurance company as well). A typical hospital guarantee lasts for between one and four years, during which time the medical facility provides funds on a monthly basis so that the practitioner can pay bills, meet payroll, and address other expenses until the practice generates enough income to survive on its own.
These arrangements are often structured so that the health care facility guarantees a certain amount of money to be loaned to the practice every month. Any revenue generated by the practice itself results in a reduction of the guaranteed funding received that month. For example, if a physician guarantee amount is $25,000 each month and the practice earns $10,000 in revenue in a given month, the facility would pay out only $15,000 that month.
How a Physician Guarantee Helps Your Practice Grow
As the physician’s practice grows, the guaranteed monthly funds continue to shrink. Ideally, the medical practice begins pulling in more than the guaranteed amount of income so that it doesn’t require any additional funds from the facility to meet its expenses. At the end of the physician’s guarantee agreement period, the practice can then use its existing revenue stream to begin paying back the loan to the facility. In some cases, a portion (or even all) of the loan amount can be forgiven if the physician agrees to certain terms, such as covering extra hospital call shifts for a certain period of time.
TriCPS can help health care professionals secure a physician income guarantee by locating funding sources, calculating monthly practice costs, and negotiating arrangement terms that are favorable for the practitioner. With a physician guarantee in place, doctors can enjoy unlimited earning potential that is not available under a salary arrangement, as well as increased autonomy and flexibility over their businesses so they can grow their practices according to their unique needs and goals.
From helping physicians find hospitals to partner with and negotiating guarantees to working with hospitals to match them with physicians, TriCPS has the necessary experience to find a good match for your business. We can provide all of the administrative and financial services necessary to help physicians set up a new practice.
If you need assistance obtaining a physician guarantee in the West Palm Beach, Miami, or Fort Lauderdale areas, or anywhere in the United States, contact TriCPS today for a free, one-on-one consultation by contacting us online or calling 954-351-0336.