Medical factoring – We offer Fast Medical Factoring

Fast medical factoring
Medical Factoring companies help bridge the gap between the instant you perform health services for your patients and when you collect.

Medical factoring is also called healthcare factoring. It’s a kind of factoring. If you run a personal or medical business that is just starting out, you are probably going to run into some cash flow problems. Every organization ever that has expanded has faced the real possibility of cash flow problems, if they didn’t start out with a ton of investment capital.

When companies are faced with difficulties with their cash flow, a lot of medical offices will attempt to get a loan for their company, or a line of credit. Even though business loans can perform well, they are not a cure for business ills. For beginners, they are hard to get. More critically though, there are sometimes maximums with them. This means that you could outgrow loan if your business is expanding at a rapid rate. That is a very crucial point because once you have outgrown a loan, it can be really hard to get a new loan.

Another alternative could be healthcare factoring. Healthcare factoring is basically a type of financing tool used to bolster healthcare offices. It can cut off 60 to 90 days that are usually required to get the claims paid, and it can accelerate the payment time to two to seven days. This can be a great benefit if loans that are slow-paying have put your business at risk of a missed payroll, missing payments of bills or even rent, hiring difficulties or delays in hiring, the funds needed to meet the payroll, and the funds needed to pay the vendors and the rent.

Medical accounts receivable financing are basically medical asset based loans or lines of credit that are not as expensive as factoring medical receivables. The company will be borrowing against a healthcare receivables pool based on the final realized value for the third parties billing.

Doctors, clinics, healthcare businesses, and healthcare offices should discriminate wisely and choose the kind of medical factoring entities that are going to give them the best deals. Healthcare providers face a lot of challenges in the economy of today. Asset based lending companies help bridge the gap between the instant you perform health services for your patients and when you collect.

Healthcare providers like durable medical equipment providers, radiology centers, and home healthcare centers are just a few of the entities eligible to get healthcare factoring loans. There are a number of other places that can get medical factoring cash too, like nursing homes, hospitals, rehab medical centers, physical therapy companies, and group practice physicians.

There are a lot of companies that understand that medical receivables are your greatest asset to help fund the growth of your business and help out with your cash flow requirements. You should be able to get the best potential terms the industry can offer you.

Private medical clinics, big rehab centers, and private doctors alike sometimes have cash flow problems and need the kind of cash infusion that medical factoring can provide.

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What’s Up, Doc? – Medical Services Factoring

 

Medical Factoring
, medical services companies need to maintain their cash flow. They have a constant need for the supplies that are required to conduct a number of different procedures

Just like any other business, medical services companies need to maintain their cash flow. They have a constant need for the supplies that are required to conduct a number of different procedures: everything from routine blood tests, to x-rays, all the way up to the more costly process of giving patients dialysis.

There is one difference that separates medical services from almost any other type of company, and that’s the fact that nearly all of their income is received via health insurance companies.

Doctors routinely refer their patients to medical services companies for screenings, treatments, and even transportation – activities that do not require the presence of a physician or the facilities of a hospital.

Upon arrival at a medical services office, the first thing that the receptionist will do is ask that person to complete a form, often several pages long. And on the first page will be a place for that person to enter his or her health insurance details.

Usually, there is a co-payment that the patient must contribute. This is to minimize fraudulent claims. But, the largest part of the bill issued for the service is paid by the insurance company to the firm providing the medical care.

The health insurance industry in the US is big business. But it’s also a complicated and time-consuming one. Doctors, medical services, and hospitals routinely file health insurance claims on behalf of their patients, but each insurance company has its own requirements and makes its payment according to its own timetable. Not only that, but there are dozens of them.

However, there is another side to invoicing that many firms never have to worry about, and that’s dealing with the US Government. That’s not to say the no other company gets contracts with them. They do. But contracts of that kind tend to be less complicated than those that deal directly with Government programs, such as Medicare and Medicaid.

An invoice that would normally be paid within 30 days by an insurance company could instead take three months or more, depending on how complicated the treatment was, and whether or not the patient and the clinic had completed all of the necessary documents.

All of these things can put pressure on the cash flow that medical service providers depend on to keep them in business.

And, as we all know, this kind of care can be very expensive. That means that the slow or non-payment of invoices can have a much greater impact on the survivability of these kinds of companies in the short term.

That makes factoring a particularly important option. So far, no one has been able to figure out a way to make the Government work faster or to write its regulation in language that people can understand, nor has there been any progress on lowering the costs of medical care.

And so for both of those reasons, medical services ought to consider selling their invoices so that they aren’t held hostage by those from whom they receive the majority of their income.

Understanding the Basics of Medical Services Factoring

In the health care industry, there are often two different departments that require the aid of medical services factoring. First there are the medical providers like clinics, hospitals, and private medical offices. Second are the vendors that provide services and supplies to the medical providers such as medical staffing agencies and those that provide medical transcription services. Each affect the other but when cash flow is slow they both suddenly come to a halt. So what is the solution?

 

Medical Services Factoring Creates Steady Cash Flow

The never ending complication is that medical providers like hospitals often have to wait for months before getting paid. This is because the transaction can go through several billing departments especially now since most patients pay using their personal medical insurances. Securing the payment from the medical insurance will take weeks due to verification and legal procedures. This is then going to go all through the hospital’s billing department a second time before it gets distributed to the proper departments that were intended to get paid in the first place. This last part also includes the vendors.

 

Because the process takes so long, medical service providers and vendors often have to slow down work or cut down on their staff to compensate. The only other option is to get a loan from the bank yet this can take just as long as receiving their fulfilled invoice. So what option is left but invoice factoring from medical services factoring companies.

 

How It Works

This is a very simple process. The medical billing department will take their invoices from insurance companies, financial firms, and others that will pay them in the weeks to come and sell them to a medical services factoring firm.

The firm will then process these invoices so that the medical provider can get all their payment in just days (mostly 24-72hrs) instead of waiting weeks. They will only get around 85-95% of the full invoice however as the factoring firm will keep the remaining balance until they paid in full. As soon as your customer pays the total amount you are given the remaining 10% minus the factoring fees, typically 2-3% . Now it will be the factoring firm to process those invoices and get paid in the weeks to come, making it much faster for vendors and medical providers.

 

This type of instant cash is better than loans because they are processed much faster and they often do not require good credit standing. Some factoring companies will check how the credit standing is for a medical provider or for their clients but over all this will not affect the pay out in many ways.

 

Another benefit is that you can get invoice insurance. This is very important for medical service providers since they should not be chasing after clients who did not pay their balances.

Without insurance the medical provider will need to pay the money back to the medical services factoring firm as penalty and chase the client to get their money. With insurance, the risk now transferred to the factoring firm. With the risks now taken out of the hands of the medical service provider and with cash flow always constant instead of having to wait for it to return, medical services factoring is often viewed as their financial savior.

To explore our Medical factoring option visit our website.