Our physician accounts receivable financing program enables you to turn your aging medical receivables into instant cash that you can use to pay down debt, payroll, or to expand your practice. Many medical professionals say that managing their accounts receivable are one of the greatest challenges they face. Medical accounts receivable are usually by far the largest asset shown on the balance sheet, yet these dollars are often unavailable for long periods of time. Due to the long process associated with reimbursement from third party payors, the need for medical accounts receivable financing has significantly increased. Our program allows medical professionals and institutions to attend to more pressing matters, such as the welfare of the patient. Our financial sources purchase receivables of rated health insurance companies and governmental agencies throughout the United States. They do not purchase worker’s compensation, personal injury, or self-pay receivables.
Our lender’s program is not a loan: and unlike a loan, the sale of receivables creates no additional debt to the balance sheet. It allows you to obtain a large portion of your receivables in a timely manner. There is an advance of up to 80% of the estimated net medical accounts receivable. The lender’s monthly service fee is a flat fee that is deducted from the remittances, and this fee is based upon numerous factors including average turn around time, average claim size and overall account size. After receiving a completed application package a Letter of Intent will be issued within 2-3 business days. The initial funding to the medical professional or institution can take place within 3-5 days of the due diligence visit.
As a medical provider your biggest asset is your accounts receivable (“A/R”) the payment you expect to get from Medicaid/Medicare, HMOs, private insurances, personal injury lien settlements, or worker’s compensation insurances. Unfortunately, due to the current inefficiencies and bureaucratic nightmares in our healthcare system a medical provider has to wait 15-150 days, or more, to monetize this asset. That hinders the provider’s ability to conduct business, pay staff, order supplies, pay rent, advertise and grow the business. Most providers turn to their local banks for working capital loans, but most of these banks have limits, strict requirements and hindrances that make it difficult to obtain these loans. Some banks don’t want to lend against A/R while others only focus on large medical providers with substantial history.
Medcare Solutions can help you with your physician financing by turning your accounts receivables into positive cash. Call us today!