How Working Capital in Healthcare Supports Your Practice During High-Deductible Season

by | Sep 6, 2024 | Blog

How Working Capital Supports Your Practice During High-Deductible Season

As an independent medical practice, you’ve likely felt the strain of high-deductible health plans (HDHPs). When patients are responsible for more out-of-pocket costs, payment delays are common, which can significantly disrupt your practice’s cash flow. Access to working capital in healthcare becomes crucial during these times, particularly early in the year when patients are still working to meet their deductibles. Working capital helps bridge the gap, ensuring your practice can maintain smooth operations without being impacted by delayed patient payments.

Having access to working capital can ease these cash flow challenges. Here’s how:

1. Smooth Over Payment Delays

When patients are slow to meet their deductibles, your revenue can take a hit. With working capital in hand, you can cover immediate operational needs like payroll, utilities, and supplies—ensuring your practice runs smoothly, regardless of payment timing.

2. Maintain Focus on Patient Care

Without the constant worry about cash flow, you can prioritize what matters most: delivering quality care to your patients. Working capital allows you to keep your focus on patient outcomes, rather than chasing down payments or stressing over overhead costs.

3. Take Advantage of Growth Opportunities

Even during high-deductible season, growth shouldn’t take a backseat. Access to capital can help you invest in new equipment, expand services, or hire additional staff when the timing is right. It ensures you’re not missing out on opportunities simply due to fluctuating cash flow.

4. Stay Prepared for the Unexpected

Medical practices often encounter unexpected expenses, from equipment repairs to sudden staffing needs. With working capital in healthcare, you have a financial cushion to handle surprises, keeping your practice stable and agile, even during periods of payment uncertainty.

Access to Working Capital in Healthcare with Thrivory

At Thrivory, we understand the unique financial challenges your practice faces, especially during high-deductible season. That’s why we offer a streamlined solution to help you access capital quickly and without the complications of traditional financing. Unlike other funding options that involve debt, equity dilution, or asset risk, Thrivory provides a faster, more flexible way to improve your cash flow.

Our approval process takes just 3-5 days on average, and once approved, our platform delivers nearly instant access to funds through our “claims to cash” system. Importantly, Thrivory isn’t a traditional lender or MCA (merchant cash advance), meaning your practice’s assets aren’t at risk. We’re here to help you focus on what matters—growing your practice and providing excellent care.

In high-deductible season, the financial landscape can be challenging. But with the right working capital strategy, your practice can thrive through the peaks and valleys—keeping operations steady and your focus on what you do best: caring for your patients.