Medical Receivables Funding
A non-traditional option for health and medical businesses financing of working capital is Medical Receivables Funding. It is the use of a provider’s own money. Use is not restricted and can provide immediate working capital for business growth, acquisitions, equipment purchases, salaries and debt refinancing. While many industries are very familiar with factoring to improve the consistency of their cash flow and increase their bottom line, many health care providers are not familiar with this practice, and do not realize what it can do for them. Medical Accounts Receivable Funding (MARF) or factoring, is a means in which the healthcare provider receives immediate cash for their billings to third-party payors (i.e. commercial insurance companies, HMO’s, Blue Cross/Blue Shield, Medicare and Medicaid).
The key to a healthcare organization’s success lies in its current and future financial strength. Maintaining a competitive edge and profitability requires an acute sense of market direction and an unshakable dedication to continually control and reduce operating costs. In the industry of workers compensation claims, the process of getting paid for medical services can become frustrating and very confusing when the insurance company refuses to pay. In addition, increased expenses such as malpractice insurance costs and the current squeeze on profits can make medical accounts receivable funding a must.