As there isn't a single funding model for Healthcare businesses in the UK, practices and care homes finance their activities in a variety of ways. Let's examine where Healthcare practitioners get their funding from, as well as some of the pros and cons of the methods they use.
1. The NHS And Local Authorities
Many of the UK's healthcare businesses are funded to some extent by the National Health Service (NHS). For example, in 2017-18, GP practices received an average of £152.04 from the NHS, for every patient on their books. However, you'll need to get a contract in place with the NHS first, and they can take a while to pay their bills. Therefore, many businesses find that they also need to obtain funding from other sources to bridge the gap. Some local authorities fund specific healthcare services, including care homes, but they won't cover most practices' standard operational costs.
2. Private Patients And Insurance Companies
Some practices advertise for private patients, who they take on either instead of, or as well as obtaining funding from the NHS. These patients pay for their own treatment or have private medical insurance cover in place. Both insurance companies and individuals can take time to settle their accounts, so sometimes healthcare firms use additional solutions, such as invoice finance, to improve their cash flow. There are also many privately funded care homes in the UK.
3. Finance Companies
Healthcare companies often turn to finance companies for loans, mortgages, and other products to cover operational and expansion costs. If you want to fund your business in this way, you'll need to find a lending instrument that meets your needs and apply to the provider directly – or through a broker. One of the main advantages of using this method is the speed with which you can get funding if your application is successful. There are products specifically designed for healthcare providers on the market, so you should be able to find a funding solution that suits you if you shop around.
Find Out More
If you want to learn more about healthcare funding models and how to select the appropriate financing solutions for your business, check out our free Healthcare Sector: Finance & Funding Guide. Our team of experts can also help your company find and acquire a suitable lending instrument, selecting competitive products from hundreds of specialist healthcare lenders. Contact us today to arrange a free consultation to discuss your options.
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