Using Medical Accounts Receivables Financing
As a physician, do you consider your accounts receivable for your practice as an asset or as a liability? When you provided the treatments and services that you were called upon to provide, you did so because the patient needed those things in order to have a better quality of life, and yet when you have called upon that patient to pay for the services you provided they do not consider that delaying those payments makes it difficult for you to provide treatment to anyone else. This difficult situation is not unique to your practice, and it is one that is faced by physicians, hospitals, surgical centers and treatment facilities every day. Provide the necessary medical care to patients, but wait to be paid for it.
Securing financing options in the case of monthly cash shortfalls due to collections problems, or exploring the options at your disposal in order to potentially secure a loan in order to expand the facility itself, can be frustrating for medical providers due to the fact that one of their biggest assets is treated as a liability by traditional institutions. When you ask for a loan, banks need collateral in the form of physical assets which can easily be repossessed and sold in order to generate the cash to pay them back. Even if this extreme case never comes to fruition, there is still the issue of paying back the loan plus additional interest, which is the way that the banks generate revenue. If you are borrowing in order to cover a cash shortfall, how do you plan on covering payments plus additional interest that is required? The answers to these issues is to consider your medical accounts receivable as the asset that they are, and use them to generate money in a timeframe that makes sense for your business.
Medical account receivables financing is the specialty of MedCare Solutions, one of the nation’s leaders in alternative financing for medical providers. Through arrangements that are made in the form of purchases of qualified accounts either one time or as an ongoing program, MedCare Solutions provides medical facilities with options that they might not have previously considered due to the fact that traditionally accounts receivable are not considered as an asset that can be borrowed against. Through this belief, medical providers might not consider that there is a method that can be secured in order to reduce the number one reason that accounts receivable are not considered as an asset that can be borrowed against, in that they are not guaranteed as able to be collected. The arrangements that can be made through MedCare Solutions programs allow for physicians to guarantee their payments on accounts receivable, not only generating the income that they represent but also providing the ability to reduce the expenses associated with collections on those accounts. MedCare Solutions assumes the risks of collection, and if the accounts receivable are not able to be collected there is no penalty whatsoever for the medical provider. You are never required to pay MedCare Solutions back for uncollected accounts, nor are you ever charged a dime in interest. Medical accounts receivable financing may not have been something you have heard about in the past, but it is definitely something you should consider in the future. Best of all, information is just a phone call away.