Financing

Unity Health Centers offers a variety of financing options to meet your needs. We have experts that can help with proformas and advice on the best structure that fits your financial needs such as

1. Traditional Bank Financing

🔹 Commercial Term Loans

• Used for build-out, equipment purchase, expansion, or buy-ins
• 5–15 year terms
• Fixed or variable rates
• Often require:
  • Personal guarantees
  • Strong payer mix
  • 2–3 years of operating history (unless de novo with strong projections)

🔹 Construction Loans

• For ground-up builds or major renovations
• Converts to permanent loan after completion
• Interest-only during construction

🔹 Revolving Line of Credit (LOC)

• For working capital
• Covers cash flow timing issues (e.g., insurance reimbursement lag)
• Short-term, renewable

2. SBA Financing

🔹 SBA 7(a) Loan

• Up to $5M
• Lower down payment (often 10–15%)
• Longer amortization (up to 25 years for real estate)
• Good for:
  • De novo ASC
  • Buyouts
  • Equipment
  • Working capital

🔹 SBA 504 Loan

• Ideal when purchasing real estate
• 10% down typical
• Long-term fixed rate on CDC portion
• Attractive for physician groups buying the surgery center building

3. Equipment Financing

🔹 Equipment Loans

• Secured by surgical equipment
• 3–7 year terms
• Often 100% financing
• Used for:
  • OR tables
  • Anesthesia machines
  • Imaging equipment
  • Sterilization systems

🔹 Equipment Leasing

• Lower upfront costs
• Preserves capital
• Useful for technology that may become obsolete

4. Physician Equity Contributions

🔹 Capital Calls

• Doctors contribute proportional equity
• Common in de novo ASC formation

🔹 Buy-In Structures

• New physician partners purchase ownership shares
• Often financed through:
  • Personal bank loans
  • Seller-financed buy-ins
  • Payroll deduction structures

5. Private Equity (PE) Partnership

🔹 Minority Recapitalization

• PE firm buys minority stake
• Physicians retain operational control
• Provides:
  • Liquidity event
  • Growth capital
  • Professional management

🔹 Majority Recapitalization

• PE acquires controlling interest
• Physicians roll equity into new entity
• Common in multi-site ASC platforms

6. Hospital Joint Venture

🔹 Health System Partnership

• Hospital buys minority stake (often 30–49%)
• Provides:
  • Stronger payer contracts
  • Referral network
  • Capital infusion
• Can reduce regulatory risk in some states

7. Mezzanine & Subordinated Debt

• Higher interest rate than senior debt
• Used when:
  • Traditional leverage limits reached
  • Funding rapid expansion
• Often paired with small equity warrants

8. Seller Financing

• Used in ASC acquisitions
• Seller carries a note
• Reduces bank loan amount
• Useful in physician-to-physician transitions

9. Real Estate Financing Structures

🔹 Sale-Leaseback

• Physicians sell building to real estate investor
• ASC leases space back
• Frees up capital for expansion

🔹 Separate Real Estate Entity

• Doctors own building in separate LLC
• ASC pays rent
• Builds long-term wealth through property appreciation

10. Accounts Receivable (A/R) Financing

• Borrow against receivables
• Improves short-term liquidity
• Higher cost than traditional bank loans
• Useful during rapid growth or reimbursement delays

11. Management Company (MSO) Structure

• Create a Management Services Organization
• MSO:
  • Handles staffing
  • Billing
  • Operations
• Can attract outside capital while preserving clinical control