subject: Medical Billing- Banks Are Seeking To Lend To Doctors [print this page] Banks are poised to lend money to doctors regardless of the economy. Why? They're anticipating that doctors will begin to move from numbered labels on manila folders to data files on computer screens.
$19 billion of federal money is coming available in 2010. Part of it will reimburse medical practices who implement electronic medical records (EMR) systems as part of their patient management systems.
Banks are Prequalifying Doctors
One example is the Bank of Nevada. They have been prequalifying medical practices for EMR system purchases. The bankers suggest that most of the doctors they speak with are ready to convert in the next couple of years.
Bank of America, Wells Fargo, US Bank as well as community lending institutions like Southwest Bank, are calling on doctors to prequalify them for loans. Plus, equipment and software vendors are offering their own financing packages to interested and qualified medical practices and physicians.
However, there still may be difficulties qualifying for loans. Because loan terms are stricter now, some doctors must pledge personal assets to guarantee the loans. Declining home values, a 22% Medicare physician payment decrease and even overall revenue decreases sometimes make the loan guarantees difficult.
Costs
One of the main reasons for the hesitation for practices to implement EMR systems is the cost. The system expense ranges from about $20,000 to into the six figures for a fully loaded EMR process.
However, with this funding available, the federal government will contribute $44,000 and up to $64,000 per system if the medical practice's Medicaid revenue is at least 30%.
The full funding amounts will be available through 2011 then decrease in the years after that.
System Concerns
Medical practice members are still struggling to understand not only the financial labyrinths but the technical aspects of EMR systems as well.
The key to realizing the increased productivity, financial gains and improved efficiency of EMR systems is to make sure all parts of the system seamlessly communicate with each other. This includes the hospital systems and any other interfacing system used in the practice.
To assist with understanding of EMR systems, medical practice members and physicians can:
- Go to seminars and workshops in their area
- Meet with three to five EMR systems providers to understand the features that work best for your practice
- Talk to other medical practices to see what works best
As a further incentive to provide the appropriate medical standard with EMR systems, Medicare payments will be docked by one, two and three percent beginning in 2015 and beyond if the standards are not met.
