Medical Receivables

Medical Receivables Funding

Medical Receivables Funding or “Medical Factoring” is a modern, effective tool for helping medical practitioners and medical facilities meet everyday cash flow demands of a field under constant duress.

The complexity of medical billing and the sluggish payment of medical claims by a variety of third party payers have caused significant problems for providers.

Additionally, the assaults on the health care field by under funding of legitimate claims and bureaucratic billing nightmares have pushed many providers to the edge.

Medical Receivables Funding can solve this dilemma for providers by immediate access to unlimited working capital!

What is Medical Receivable Funding?

Simply stated, medical receivable funding is a process by which health care providers receive immediate cash for billings to third party payers such as HMO’s, Blue Cross/Blue Shield, commercial insurers, and government payers including Medicare and Medicaid.

Respected and reliable national funding sources will purchase your billings for a discount and in turn collect the payments due from these sources.

What is Factoring?

Factoring is a type of financing where an organization sells a portion of its accounts receivables to a financier referred to as a “factor”.

After a business, either medical or non-medical, sells its accounts receivables (invoices), it immediately receives cash for a percentage of the invoices. The remainder, less the fee of the funding source, is paid to the seller when the payment is received and cleared by the factor.

The medical provider pays fees only for the actual number of days outstanding for the funds received. The medical provider is free to use this immediate cash for any purpose required for the success of the business.

The Factor takes responsibility for the collection effort from the third party payers through its dedicated team of specialists. This can also be a great benefit to a medical office, as it relieves the office's staff to do other important duties than continue to keep track of the incoming payments to make sure they are paid on time.

Is accounts receivable factoring a new idea?

Factoring of accounts receivable in the general business world has been used for many years. Because of the complexity of health care and the dramatic increase in cash flow problems, this resource to the health care field has only been available since the late 90’s.

However, the number of providers utilizing Medical Receivables Funding is experiencing tremendous growth as word of this tool spreads.

What are the advantages of Medical

Receivables Funding Programs for Providers?

Creates solid, dependable cash flow.

Increases the overall percentage of billings that you collect on.

Decreases the interval between the time you provide a service and the time you are paid for it.

Offers assistance with collections.

Improves credit rating by allowing providers to pay obligations promptly.

Improves balance sheet.

Reduces administrative costs by taking advantage of the economy-of-scale that results from sharing overhead with many other providers.

Freedom to grow the medical business without the restraints of meager cash flow caused by delayed payments.
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