Neurology Infusion Center Financing
Adding a neurology infusion center can allow a practice to treat patients with chronic neurological conditions in a setting they already know, instead of sending them to a hospital outpatient department. For many practices, infused therapies for multiple sclerosis and newer treatments for Alzheimer’s disease have made in-office infusion one of the most discussed growth opportunities in the specialty.
Building that capability takes capital. Space must be designed or renovated, equipment purchased, staff hired and trained, and systems put in place before the first patient is treated. This article focuses on financing the facility and launch. Clinical protocols, drug handling, billing and site-of-service rules vary by state and payer, and nothing here is clinical, legal, tax, billing or compliance advice.
Why Practices Consider In-Office Infusion
Neurologists often cite several reasons for bringing infusion services in-house:
- Continuity of care: patients can stay with the team managing their condition
- Patient convenience: a familiar location and scheduling that fits the practice’s workflow
- Practice growth: a new service line that may add revenue alongside office visits and diagnostics
- Coordination: closer management of treatment schedules, monitoring and follow-up
Whether an infusion center makes sense depends on patient volume, payer coverage, staffing, space and the practice’s ability to manage drug purchasing and reimbursement. Owners should evaluate those factors with qualified billing and compliance professionals before committing.
What a Neurology Infusion Center May Cost to Build
Costs vary widely depending on the size of the suite, the condition of the space and the services planned. Common categories include:
- Build-out and renovation: treatment bays, nursing station, medication preparation area, plumbing, electrical and HVAC work
- Infusion chairs and furniture: reclining chairs, side tables and patient comfort items
- Clinical equipment: infusion pumps, monitoring equipment, medication refrigeration with temperature monitoring and emergency equipment
- Technology: scheduling, documentation and inventory tracking systems
- Staffing and training: infusion nurses and coordinators hired before revenue begins
- Pre-opening costs: permits, design fees, policies and payer setup
Some newer therapies may also require coordination with imaging providers for patient monitoring. Practices that do not offer imaging in-house should plan how that coordination will work before launching.
Separating Facility Costs From Drug Costs
Building the suite and buying the drugs are two different financial problems. The facility is a one-time capital project that can often be financed over a longer term. Drug purchasing under a buy-and-bill model creates an ongoing cash flow gap between paying for medication and collecting reimbursement.
Treating them separately can help a practice choose the right financing for each need. Our article on buy-and-bill working capital explains the drug float side in more detail.
Financing Options for a Neurology Infusion Center
Depending on the project and the practice, financing may include:
- SBA 7(a) loans: may be used for leasehold improvements, equipment and working capital for qualified projects
- Conventional practice loans: based on the lender’s own underwriting and the practice’s financial strength
- Equipment financing or leasing: for chairs, pumps, monitoring and refrigeration
- Real estate financing: if the practice is buying or building the space it will occupy
SBA 7(a) financing eligibility and terms depend on the business, the borrower, the use of proceeds, program rules and lender review. Every loan is subject to approval, and nothing here is a commitment to lend.
For the equipment portion, our neurology equipment financing and leasing page explains how practices may spread equipment costs over time.
Owning or Leasing the Space
An infusion build-out can be a significant investment in someone else’s building if the practice leases. Owners should review lease length, renewal options, landlord contributions toward improvements and what happens to the improvements if the practice moves.
Some practices decide that owning the space better protects the investment. Our guide to whether to buy or lease a neurology office walks through that decision.
What Lenders Typically Review
Lenders evaluating an infusion project may look at:
- The practice’s historical cash flow and existing debt
- Current patient volume that may need infusion services
- A business plan describing the ramp-up period and staffing
- Contractor bids and equipment quotes
- How drug purchasing will be funded
- The owner’s credit history and available liquidity
A realistic plan for the months before the center reaches steady volume can strengthen an application.
Planning the Ramp-Up
Infusion centers rarely start at full capacity. Patients must be identified, authorizations obtained and schedules built. During that period, staffing, rent and loan payments continue.
Building a cash reserve or working capital line into the plan can help the practice avoid strain while volume grows. Practices considering a satellite office with infusion capacity may also find our article on opening a second neurology location useful.
Questions to Answer Before You Build
- Which therapies will the center offer, and how many patients need them now?
- How will payer coverage and prior authorization be managed?
- Who will supervise the infusion suite clinically?
- How will drug inventory be purchased, stored and tracked?
- What happens to the investment if volume is slower than planned?
Final Thoughts
A neurology infusion center can expand the care a practice offers and create a new line of business, but it requires careful planning around space, equipment, staffing, drug purchasing and cash flow. Separating facility financing from working capital needs, and planning for the ramp-up period, can help owners invest with more confidence.
US Medical Funding helps neurologists finance infusion suites, build-outs and other practice growth projects. Learn more about our neurology practice expansion financing and our full range of neurology practice financing options.
