If you are a business in the medical & healthcare industries, there is great news for you! Medicare, Medicaid, and other private insurers can take 30 – 90 days, or more, to pay your company on your invoices. If you provide medical or healthcare-related services of any type, we can help you.
Healthcare factoring applies when there is not a third-party payer involved and medical factoring companies are used when there is a third-party payer involved.
Healthcare and Medical Receivables Factoring is Available For
- Sole and Group Practitioners
- Rehabilitation and Physical Therapy Facilities
- Durable Medical Equipment (DME)
- Medical Billing Services
- Medical Coding Services
- Medical Staffing Companies
- Medical Supply Companies
- Medical Transcription Services
- Medical Transportation
- Nursing Homes
- Home Healthcare Providers (Medical & Non-Medical)
- Imaging Facilities (providers of MRIs, X-Rays, CT Scans, etc.)
- Ambulance Providers
- And more
Some of the common Healthcare receivables sectors include medical transcription services, medical staffing companies, medical coding and billing services, medical supply companies, etc.
By utilizing healthcare factoring, these vendors can enjoy the benefits of a virtually unlimited line of credit all based upon the services they’ve provided. The simple method of factoring healthcare receivables is as follows:
- The healthcare vendor invoices their customer for work that has been completed. Some of the common customers will be hospitals, nursing homes, medical offices, etc.
- Next, the vendor sends a copy of the billing documentation to the healthcare factoring company.
- Within 24 hours or less, the factoring company will deposit funds into the vendor’s bank account. This amount is typically in the range of 85% of the gross invoice value.
- The factor holds 15% while awaiting payment and handles collections on behalf of the vendor.
- As soon as the invoice is paid in full, the factor releases the 15%, minus the factoring fee, back to the vendor.
Whether you are billing Medicare or Medicaid, third-party insurance companies, Blue Cross/Blue Shield, or HMOs, we have a factoring solution to help. By factoring your medical claims, you will benefit by receiving capital up-front, while the factor waits months for your customers to remit payment. The general process for factoring medical claims is as follows:
- The provider submits the claims to the third-party payer as normal.
- A copy of the paperwork is submitted to the factoring company.
- Within 24 hours or less, the factoring company deposits funds directly into the medical provider’s bank account (typically around 85% of the net collectable value).
- As soon as the claim is paid in full by the third-party payer, the factor releases the remaining 15% minus a small factoring fee.
Simply contact us today for a detailed discussion focused on your business and its capital needs. In most cases, you can begin funding your receivables in as little as 1-3 days.