Medical imaging centers have become very popular businesses among physician-owners as well as entrepreneurs that are looking to capitalize on the very high fees that are normally associated with a magnetic resonance imaging scan, CAT scan, or a related medical imaging to enjoy very high barriers to entry which is why medical imaging center business loans are very easy to obtain. The vast majority of the capital sought by an entrepreneur or radiologists looking to open up one of these businesses is almost nearly fully secured by the imaging equipment necessary in order to provide the services.
One of the nice things about these businesses is that they are able to generate revenues from a number of different revenue streams including patient co-pays, private insurance, as well as through publicly funded healthcare systems. The demand for medical imaging does not wane during times of economic recession. As such, lenders, financial institutions, banks, and credit unions are most always willing to provide medical imaging center business loans.
It is very important when a radiologist or entrepreneur that is looking to develop this type of business approach is a bank that they have all the necessary documentation that allows them to render an appropriate decision. This includes having a very well-developed medical imaging center business plan that features a five-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. Medical imaging is one of the fastest-growing segments of the medical care market given that many people from the baby boomer generation are reaching their senior age. As such, the anticipated growth rate of this industry is expected to remain within 3% to 5% over the next 20 years. Aggregate revenues generated from medical imaging centers exceeds $20 billion per year and will continue to grow significantly.
The very high barriers to entry make these types of business is a very good investment given that a radiologist and a number of qualified assistance must be available at the facility in order to render the services. The very high start up costs, which can range anywhere from $1 million to $5 million, also makes competition within this market somewhat sparse depending on the location. Medical imaging centers in rural markets tend to generate substantially more profits given that the number of competitors is usually few and far between. However, as the demand for the services continue to grow – even in rural markets – the need to have additional competitive advantage may present itself.
When obtaining a medical imaging center business loan, a full inventory of equipment that is going to be purchased with the money should be provided to the loan officer. In some cases, there are a number of ways that these businesses can be creatively financed through medical imaging equipment leases. Given the continued and rapid change in technology as it relates to medical imaging, it may be in the best interest for these types of businesses to pursue specialized leasing programs in order to ensure that they are always able to use the latest and state-of-the-art technology when providing medical diagnostic services.
The gross margins generated from the services typically range anywhere from 80% to 90% depending on whether or not the bad debt expense is included within the company’s profit and loss statement. These high gross margins allow a physician-owner, radiologist, or entrepreneur to very easily repay any underlying debt obligation as a relates to a medical imaging center business loan.
Overall, as with any type of healthcare business – obtaining financing provided that the owner is properly qualified to own and operate the business or render medical services on a day-to-day basis is very easy. Banks and lenders love the place borrowed funds with healthcare businesses given the very high gross margins generated as well as the continued demand in any economic climate. Even time during times of an economic recession, medical imaging centers are able to remain highly profitable and cash flow positive and can usually pay off any business loan very quickly. The very large tangible asset base which primarily consists of MRI machines, CAT scanning machines, PET machines, and ultrasonic devices are all outstanding forms of collateral for a business loan.