Why is medical factoring for doctors important? It’s because medical factoring can mean the difference between a thriving practice or an endless frustration over uncollected bills and the resulting inability to properly sustain a high standard medical practice.
Medical and Financial Management Skills
For physicians, a successful healthcare practice can be seen not only in the number of satisfied patients that the doctor treats, but also in the improved quality of life that he or she is able to provide as a result of pain and disease management.
In turn, the attainment of such results are generally dependent on two things: the medical and human relations skills of the doctor, and his or her financial management acuity. While both may be learned in school, it is only through experience that the desired level of excellence in patient care and financial management are achieved.
However, even if a physician may have impressive medical skills and is highly experienced in financial management, there are other things that could get in the way of successful health practice. Fortunately, there are also corresponding ways by which medical factoring could be the solution to such obstacles.
One of the concerns of private health care practitioners (as opposed to doctors who work in hospitals) is overhead costs. A physician who practices in a private capacity has to deal with the payment for utilities and rent, as well as staff salaries. Overhead costs are subject to economic forces and geographical location, and their fluctuation can severely affect cash flow.
Delays in Payment
Collecting from health insurance companies can take a long time. Even if it has already been weeks or possibly months since the medical treatment had been given, physicians often experience delays in payment.
On paper, physicians may have a lot of accounts receivables but they cannot spend the figures that are indicated as receivables. Such “payments” cannot be used to pay staff salaries, nor can they be used to buy medical materials or equipment, which is why a doctor may often be cash strapped.
Again, this could be directly tied to the economy. The Corporation for Enterprise Development recently released a new study which showed that 44% of Americans are experiencing poverty in terms of liquid assets. This means they live from paycheck-to-paycheck, since they have less than 3 months savings, if any.
Although as a whole, the public still sees the importance of prioritizing health care above their other needs, there are times when matters relative to health care, such as the payment of insurance premiums, become a non-priority.
Due to the nature of their profession, physicians dealing with time constraints or time pressures are a distinct part of doctors’ lives. Generally, their concentration is fixed upon two major aspects: actual patient care and the upgrading of their own skills and knowledge through seminars, conferences, and advanced studies. Such things can often reduce their time for reviewing the minute financial details of their private practice, which in turn, can cause cash flow problems.
It is in these three important areas that medical factoring for doctors become crucial. Basically, medical factoring can free up the cash flow of physicians so that they can devote their time to providing excellent medical care, instead of worrying about where to get funds. If you are a private health care practitioner, get in touch with Neebo Capital to find out how we can help you.