How merchant cash advances can help manage practice staff shortages

The healthcare industry is just one of many to feel the harsh effects of the “great resignation”, including sudden staffing shortages, particularly in the field of nursing.

Earlier this year, a US Bureau of Labor Statistics study reported that “more than 275,000 additional nurses [will be] needed from 2020 to 2030.” The findings also revealed that employment opportunities for nurses are projected to grow at a faster rate (9%) than all other occupations from 2016 through 2026.

Fortunately, there are things medical practices can do to not only hire new staff, but to retain them as well. Overcoming staffing shortages requires an investment of working capital, however, which many practices may be lacking after two years of pandemic restrictions.

Merchant cash advances (MCAs) may be the perfect medical practice funding solution for those looking to boost cash flow in order to hire and retain qualified staff.

Merchant cash advances are a fast form of alternative funding that are ideally suited to help you hire new or retain existing employees. Because MCAs are repaid from a portion of your daily or weekly credit card sales, retaining staff or hiring new employees so you can focus on patient care can help you repay your funding faster than other forms of medical practice loans like SBA loans or term loans.

Let’s take a closer look at MCAs and how medical practices can use them to overcome staffing shortages.

Medical practice loans: 8 Ways MCAs can help medical practices deal with staffing shortages

Here we’ll dive into eight ways medical practices can use merchant cash advances to deal with staffing shortages, including:

1. Offering overtime
2. Upskilling existing staff
3. Hiring new staff
4. Offering higher wages and better benefits
5. Providing flexibility to new and existing employees
6. Investing in technology to help you automate and reduce staffing needs
7. Working with a staffing agency
8. Offering employee referral bonuses

1. Offering overtime

Paying overtime may be less expensive than hiring and training new staff, and while offering more hours to your existing staff may mean paying extra wages, it could be the best way to ensure there is no disruption in patient care. Merchant cash advance funding can be used to cover the cost of overtime.

2. Upskilling existing staff

Rather than hiring and training new employees, use merchant cash advance funding to upskill existing staff. Skill-building programs are also a strong incentive to retain existing medical practice staff.

3. Hiring new staff

Sometimes, hiring new employees makes the most sense. Medical practices can use MCA funding to work with college training programs to create a hiring funnel, or to develop paid internship programs. Merchant cash advance funding can also be used to cover onboarding expenses or to provide additional training to less experienced candidates.

4. Offering higher wages and better benefits

Use merchant cash advance funding to attract new employees with higher wages and better benefits, such as more paid time off, better health benefits and sick leave, or retirement savings plans.

5. Providing flexibility to new and existing employees

Offering flexible work hours shows staff that you value work-life balance, which can give you a competitive edge over other medical practices. With a merchant cash advance, you can hire more part-time employees to enable flexible work schedules.

6. Investing in automation technology to help reduce staffing needs

Technology that replaces the need for some employees or helps employees to work more efficiently is a great way to use merchant cash advance funding.

7. Working with a staffing agency

Working with a professional staffing agency may be the most efficient way to find talented medical practice candidates. Use merchant cash advance funding to cover staffing agency costs for full- or part-time employees, or to connect you with qualified candidates for:

• Short- or long-term projects
• Planned vacation time
• Sick leave or personal emergency leave
• Parental leave
• New system implementations

8. Employee referral bonuses

Referral bonuses are a great way to incentivize your current staff to share new job openings with others they know. Merchant cash advances can provide the working capital your medical practice needs to fund bonuses or other benefits for successful employee referrals.

Can a merchant cash advance help your medical practice overcome staffing shortages?

When issued by a reputable lender, merchant cash advances provide numerous advantages over traditional medical practice loans, including:

• Simplified applications with less paperwork and less rigorous approval requirements.
• Faster processing and approvals, with funding sometimes available in as little as one business day.
• Greater flexibility and more room to negotiate terms.

With funding from as little as $3,000 up to $500,000, alternative lenders can give you access to flexible merchant cash advance funding to help your medical practice manage staffing shortages.

Pamela Kohl is the Vice President of Marketing at Greenbox Capital®. With over 25 years’ experience in financial services, Pamela has worked closely with banks, alternative finance, and other fintech platforms to develop core banking services, as well as establish new card programs, lending programs, and global payments platforms. She has been nationally recognized for creating innovative solutions, leveraging new markets, and developing winning strategic partnerships. Pamela earned a B.A. from Marshall University, summa cum laude, and M.A. in International Economics from the University of Miami, where she graduated with Distinction.