Day hospital finance

A day hospital is a private health facility licensed to perform same-day surgical and procedural care: ophthalmology, endoscopy, ENT, plastics, orthopaedics, dental surgery, IVF and more. Licensing and accreditation requirements vary by state and by project, and they shape the build, the timeline and the funding, so we plan the lending around them from day one.

The people who build them are usually the people who will operate in them: syndicates of surgeons and proceduralists who are sending their lists to someone else's facility and decide to own the facility instead. A typical syndicate holds the venture through multiple entities, an operating company for the hospital, often a separate property entity, and each specialist investing through their own company or trust. That structure is normal and sensible. It is also precisely what generalist lenders find hardest to assess.

Day hospital revenue works differently from practice income, and presenting it properly to lenders is a large part of getting a scale project funded. The facility's income depends on utilisation: how many lists run, how full they are, and on what terms. Before opening there is no trading history at all, which means lenders are assessing a projection, the strength of the committed specialists behind it, and the sponsors' own financial position.

This is where specialist presentation decides outcomes. The individual owners are usually strong borrowers in their own right, specialists who commonly bill in their own name and pay service fees to practice entities, income that lenders assess well only when presented properly. A day hospital application done well stacks those personal strengths, the syndicate structure and the facility projection into one coherent story. Done poorly, each lender sees only the fragment in front of them.

Because a day hospital breaks their templates in every direction at once. The borrower is not one person but a syndicate through multiple entities. The asset is specialised, because a theatre fitout is nothing like a generic office fitout. The income has not started when the money is needed, and the sums involved sit above small business lending but outside corporate templates. A single bank asked to hold all of that risk alone will often say no, or say yes slowly on heavy terms.

What wins is multi-lender structuring: property with the lender that prices medical premises best, fitout and equipment with lenders who understand medical assets, working capital sized for the real ramp-up, with guarantees and security carved up so each owner's exposure matches their share. That is broker work at its most demanding, and it is exactly what MedX Finance is built for, with 45+ lenders, deep commercial expertise, and a 48-hour lending strategy that shows the syndicate what is achievable before anyone commits.

Property or long lease. Freehold purchase, with up to 100% of purchase price or valuation available on owner-occupied practice premises, or a long lease with substantial fitout investment behind it.
Theatre fitout. Operating theatres, recovery bays, sterilisation, medical gases and compliant clinical spaces. Fitout at this standard is a major capital undertaking in its own right, and a greenfield project sits among the largest commitments in private medicine.
Medical equipment. Anaesthetic machines, theatre tables and lighting, scopes, sterilisers and monitoring, financed against the assets and matched to their working lives.
Working capital. Carrying the facility through licensing, accreditation, staffing and ramp-up to steady utilisation, a runway that continues well beyond practical completion.
The owners themselves. Each specialist's buy-in, structured through their own entity, alongside their existing practice and personal lending.
Illustrative categories only, not financial advice. Eligibility, structures and terms depend on your circumstances and lender criteria.

Plenty of our clients talk to us long before a loan exists: weighing a practice purchase, planning a fitout, or working out what their career unlocks. That early thinking costs nothing and is some of the most valuable work we do. And when you are ready to move, it runs like this:
1. Today: talk to a specialist. 15 minutes on the project and the syndicate. No credit check, no cost.
2. Within 48 hours: your lending strategy. How the stack splits across lenders, what the syndicate can raise, what it costs.
3. Application to approval. We package, submit and chase. Timing depends on the lender and the deal, and you will always know where things stand.
4. Approval to settlement. We coordinate through to the finish, and stay the syndicate's broker as the facility grows.