Crownwick Advances, a small-business funding service in Lancaster, PA, arranges funding for physician and dental practices: equipment financing for chairs, imaging and diagnostic systems, term loans for build-outs and expansions, and working capital while insurance claims are paid. Lancaster County, PA had 234 physician and 181 dental offices in 2023.
| Offices of physicians, county | 234 (CBP 2023) |
|---|---|
| Offices of dentists, county | 181 (CBP 2023) |
| Physician office employees | 5,321 |
| Dental office employees | 1,891 |
| Ambulatory care employers, county | 922 |
| Doctors' offices, downtown ZIP | 13 (ZBP 2023) |
How cash moves in a practice
A medical or dental practice delivers care first and is paid later. Patient copays arrive at the visit, while insurer and government payments follow after claims are submitted, reviewed and processed. Meanwhile payroll, rent, supplies and equipment payments run on fixed dates. A new provider, a billing system change or a run of denied claims can widen that gap.
The big capital costs are equipment and space: dental chairs and delivery units, digital imaging and cone-beam systems, exam tables, diagnostic devices, and the plumbing, electrical and cabinetry needed to fit out a treatment room.
Lancaster County, PA practices in the Census counts
Lancaster County had 234 offices of physicians with employees in 2023, employing 5,321 people with about $565.3 million in annual payroll, and 181 dental offices employing 1,891 with about $117.6 million (County Business Patterns 2023). Only 24.8% of physician offices and 29.3% of dental offices had fewer than five employees, against 47.5% of all employers in the county. The wider ambulatory health care group, which also includes therapists, labs and home health, numbered 922 employers with 14,328 employees.
In ZIP 17602, there were 13 physician offices and 10 dental offices with employees (ZIP Code Business Patterns 2023). Separately, 195 physician and 86 dental businesses in the county had no payroll in 2024 (Nonemployer Statistics 2024).
Medical practice equipment financing
Imaging systems, ultrasound, lasers, sterilization equipment, dental chairs and intraoral scanners are expensive, specialized and financeable, with the equipment as collateral. Partners will want the vendor quote, and for used or refurbished equipment, its age and service history. Technology that dates quickly may suit a lease; a chair that will serve for many years may suit a loan. Loans, leases and finance agreements are set side by side on the equipment financing page.
Dental practice loans and medical practice build-outs
Dental practice loans can fund a new operatory, a relocation, a renovation or the purchase of an existing practice. A term loan fits these one-time costs; partners will want the contractor's estimate or the purchase terms, the lease, and the practice's collections history. Practice acquisitions bring their own review: the seller's production and collections, the patient base, and a transition plan.
Practice needs and the funding usually discussed
| Need | Usually discussed |
|---|---|
| Imaging, chairs, diagnostic equipment | Equipment financing |
| New operatory, remodel, relocation | Term loan |
| Wages while insurers process claims | Working capital |
| Recurring reimbursement gaps | Line of credit |
A hypothetical new operatory
Illustration only, not an offer: a four-chair dental practice adds a fifth operatory. The chair, delivery unit and light are quoted at $38,000, imaging at $24,000 and the room fit-out at $31,000. Splitting the request, equipment financing for the $62,000 of equipment and a term loan for the $31,000 fit-out, can match each piece to the life of what it buys.
Business loans for a medical practice: what partners review
- Bank statements and collections history, including insurance receipts
- Accounts receivable aging and claim denial patterns
- Equipment quotes or the build-out estimate
- The lease, with its years remaining
- Provider credentials and ownership structure
- Personal credit of the owners
Therapy, chiropractic and optometry practices share many of these questions; see the chiropractic, therapy and optometry page. The Lancaster, PA data page carries the county-wide counts.
By Crownwick Advances · Updated
