Factoring Medical Receivables
Medical receivables factoring includes a third party payer (i.e. Medicaid, Medicare or private insurance company) within the medical invoicing process. By factoring medical receivables, the medical provider can pay heavy costs in interest. Moreover, the medical factoring process is as follows:
- A medical provider submits bills to a third-party payer (i.e. Medicaid/Medicare, HMOs, private insurances, personal injury lien settlements, or worker’s compensation insurances, etc.) for the medical services performed.
- The medical provider sends a copy of the invoices to their invoice factoring firm.
- The factor then purchases the medical provider’s invoices and advances up to 80% of the expected net collectible value.
- The medical factor uses the remaining 20% (reserve) as a buffer in case some of the provider’s bills do not get paid or if they were billed incorrectly.
- The reserve, less the factoring fee, is released back to the medical provider after payments are received.
Have you ever had to turn down a contract with a large healthcare facility because you didn’t have enough working capital to hire new healthcare personnel? Medcare Solutions can help in this situation and many others. We are dedicated to providing funding for suppliers of services and products to healthcare institutions. We will purchase your medical accounts receivables and turn them into positive cash. This is not a loan and you will not be charged interest on this transaction.
Medcare Solutions provides financial resources for suppliers of services and products to healthcare institutions. We solve the cash flow problems created when your healthcare business has growth opportunities that exceed its ability to finance them with existing working capital and alternative capital sources. Selling your accounts receivables to Medcare Solutions gives you the cash to meet payroll, take supplier discounts, purchase equipment or increase staff. All of this is accomplished without increasing debt obligations to your healthcare business.