In The Press
Merchant Capital, Discovery Health to Assist Healthcare Practices

Alternative lender Merchant Capital has launched a working capital solution aimed at helping South African healthcare professionals who are facing financial challenges due to the Covid-19 pandemic. This innovative financing option is the result of a collaborative effort between Discovery Health, which seeks solutions for doctors, and Merchant Capital. Discovery Health serves as a facilitator between the healthcare practices and Merchant Capital, with no financial involvement or benefit.

Private healthcare practices across the country, including general practitioners, specialists, and dentists, have experienced a significant decline in patient numbers because of the pandemic. Statistics from the South African Medical Association (SAMA) indicate that private practices saw an average decline of 60% in patient visits during the hard lockdown. Although patient numbers have since increased, they remain 20% lower than pre-pandemic levels.

The solution, WELL by Merchant Capital, has been specifically designed for healthcare professionals, providing access to unsecured working capital to cover operational expenses. Successful applicants can receive funds in as little as 24 hours through a streamlined administrative process, with repayments based on a fixed percentage of claims, allowing for flexibility during periods of interrupted or low turnover.

Professor Morgan Chetty, head of the KwaZulu-Natal Doctors Healthcare Coalition (KZNDHC) and Chairman of the Independent Provider Association Foundation of South Africa (IPAF), noted that the Covid-19 pandemic has been ‘a defining moment’ in healthcare, presenting numerous financial challenges for practices.

“These unprecedented challenges bring great uncertainty about the future survival of medical practices. Merchant Capital’s swift, appropriate, and professional response to support these practices is commendable and will help more practitioners continue caring for their patients,” said Professor Chetty.

Dr. Ryan Noach, CEO of Discovery Health, stated that the pandemic has introduced ‘unavoidable financial complexities’ for many healthcare professionals. “We recognize the challenges faced by healthcare practitioners and want to ensure they have adequate financial support during the COVID-19 crisis to maintain their sustainability and recovery. We’re innovating to facilitate an attractive financing offering between healthcare practices and Merchant Capital,” said Noach.

Merchant Capital CEO Dov Girnun highlighted that Covid-19 has pushed hundreds of medical practices to the brink of collapse, emphasizing the need for all stakeholders to find solutions to ensure the sustainability of private medical practices during this time.

“The innovative WELL by Merchant Capital product will provide essential, quick, and easy access to unsecured working capital to help affected healthcare practices meet operating costs such as rent and staff overheads in the short term, and to fund practice growth as the market recovers in the medium to long term,” Girnun said.

The launch of this initiative is part of a broader series of efforts by Merchant Capital to support local businesses during the COVID-19 pandemic. Previously, Merchant Capital announced a partnership with Discovery Insure to provide struggling SMEs with working capital to assist with cash flow, and introduced its RE-BOOT short-term finance product to help the restaurant sector reopen after lockdown.

Over the past seven years, Merchant Capital has provided working capital assistance to nearly 10,000 SMEs, totaling R2 billion.

Healthcare professionals interested in learning more about this working capital solution can call 010 140 3242 or email well@merchantcapital.co.za.