Medical Accounts Receivable Financing
The selling of a firm’s accounts receivable to a third party, known as a factor. If a firm is not confident in its ability to collect on its credit sales, it may sell the right to receive payment to the factor at a discount. The factor then assumes the credit risk associated with the accounts receivable. This allows the firm access to working capital immediately, which is important especially if the firm might otherwise have a cash flow problem. The price of accounts receivable financing is determined by the creditworthiness of the firm’s customer, not of the firm itself.
The Medical Industry is often excluded from Accounts Receivable financing because of the highly specialized billing methods and complexity of medical receivables servicing. Medcare Solutions Medical Accounts Receivable Financing Program provides the solution to your cash flow problems. If you are a health care provider and have outstanding / unpaid invoices to Medicare, Medicaid, and/or third party insurance companies, we can help you improve your cash flow position. Receive cash within 24-48 hours of submission of claims.
Providers in the health care industry may also be susceptible to cash flow shortages. Physicians, nursing homes, hospitals, medical equipment companies and other health care providers that depend upon payments from health insurance companies, Medicare and Medicaid can face severe cash flow challenges caused by slow paying insurers and government bodies. Medical providers have discovered a solution to their cash flow problems through medical accounts receivable financing. It is the same solution that companies in other industries have been taking advantage of for years to solve their cash shortage issues.
Typical health care providers and the cash flow challenges confronting them include:
- Doctors, group practices and urgent care clinics: Overhead to keep an office operating, staff salaries and supplies are just some of the expenses physicians must pay out regularly just to keep their offices open in order to provide care for patients.
- Nursing homes: Money must be spent to maintain staffing levels and services to care for the residents, overhead and other operating expenses must be paid.
- Diagnostic and imaging centers: Most facilities lease the MRI, CT scan, PET scan, X-ray and other diagnostic equipment at an enormous monthly cost on top of other overhead and operating expenses.
- Physical therapy and rehabilitation centers: Payments for equipment, supplies, facilities and other operating expenses can create cash flow issues if insurance and payments from government programs are delayed.
- Home health care agencies: Companies providing care to people in their homes as they recover from medical procedures, injuries or illnesses must meet weekly payroll expenses for the nurses and health care aides working for them. These costs, added to other operating expenses, make it essential that a continuing source of readily available cash be available.
- Companies providing home medical equipment: The sale and rental of oxygen equipment, wheel chairs, hospital beds and other equipment supplied to patients convalescing at home is how these companies make money. A shortage of cash as they wait for payment from Medicare, Medicaid, workers’ compensation and private health insurers can hamper a company’s ability to acquire additional equipment as needed.
Medcare Solutions can turn your medical accounts receivables into positive cash. Call 877-909-3111 Today!