Physician Lien Financing For Medical Practices
One of the more common challenges that faces physicians in the current economic climate is the need for available cash in order to pay ongoing expenses, during times which the accounts receivable are not able to be collected upon and provide enough resources to cover monthly bills. Many people outside of the medical field assume that physicians run a type of business that is purely profit, and would not face such types of hardships. Any physician will inform you that nothing is further from the truth, and the costs of staffing, rent, supplies and utilities can be a large monthly expense that outweighs the money that is collected from seeing patients from time to time. The main issue is that physicians will sometimes treat patients who are involved in situations where they are not paying for the treatments at the time of receiving them, due to court cases, personal injury situations, worker’s comp cases and other examples. These types of treatments are generally provided in advance of payment as the bills are covered by a settlement of some sort, and the lengthy timeframes that court proceedings can drag on is very difficult to predict. In some cases, the settlement is never received by the injured party and therefore the bills that cover the treatment go unpaid. These aging accounts on the physician’s books can create difficulty for the practice itself if they are not collected in a timely manner, because an outlay of time and supplies was absorbed by the physician, who may never recover his debt.
Traditional funding and financing options for physicians are difficult to secure, as they typically will only be able to be garnished through the equipment of the practice being used as collateral. A loss of the medical equipment necessary to treat patients through repossession could close the facility permanently, making the decision to pursue financing options a difficult one. Luckily for many physicians and medical facilities, a physician lien financing option exists that does not utilize physical assets as collateral on a loan, thus providing no-risk capital whenever necessary. Med Care Solutions offers financing programs that purchase the existing accounts receivable from the physician, providing the immediate cash necessary to pay the bills and relieving the facility of the burdens of collections and risks of default. Unlike traditional loans, Med Care Solutions offers lien purchase programs designed to hasten the collections process to days instead of months or years, providing physicians with a guarantee that they will be paid for the services they have provided to patients involved in legal cases. Through a short application process, physicians enter into an agreement with Med Care Solutions acting as a third party, who in turn pays the physician directly in exchange for the rights to the collection of the account. If the case is not settled to the favor of the patient, the physician in not liable for any repayment or penalties with regards to the account, allowing physicians to rest assured that they will be compensated for their work, and giving them the peace of mind that they will be able to cover the bills. Contact Med Care Solutions through their website today to learn more about these specialized programs.