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Healthcare Accounts Receivable Financing

Healthcare Accounts Receivable Financing

Are you or your practice aware of an alternative financing model known as “healthcare accounts receivable financing?” Through this type of funding, which leverages the existing AR accounts, health care providers have the ability to not only reduce the wait times between reimbursements but additionally guarantee payments on accounts.  Healthcare accounts receivable financing is a specialized arrangement between a third-party financing firm like Med-Care Solutions and a medical provider, who agree through a contractual relationship that in exchange for payment on qualified AR accounts, the collections of that account become the property of the third-party.  This arrangement is quite advantageous to facilities that struggle with collections activities and aging accounts by removing all risk from the account, providing timely payments and allowing for exploration of previously unexplored opportunities in the form of higher-risk patients like automobile accident litigations and worker’s comp cases.

What are the advantages of healthcare accounts receivable products offered through Med-Care Solutions? The most obvious advantage is quick and easy access to capital.  The process is unlike traditional lending and banking systems, offering healthcare providers a non-bureaucratic method of accessing necessary capital for any reason.  There are no business requirements to meet in order to access this capital, there is no necessity of profitability, nor are there any additional qualifications that you must meet.  The process is simple and involves only the drafting of an agreement and the analysis of the accounts that will be involved in the transaction.  If the accounts are qualified under the guidelines of the program, the cash is on it’s way to you almost immediately.  These types of arrangements limit your available cash only to the amount of each AR account.  With this type of arrangement in place, you are in control of your own growth destiny in that you are not subject to credit approvals of any kind.

Another advantage of healthcare accounts receivable financing is that it is a “no debt” solution.  What this means is that unlike borrowing money in order to meet needs, the leveraging of your AR does not add to your debt in any way.  Your bottom line value of your business is not diminished by the acquiring of additional debt and interest payments, and the hard assets of your business are not limited by being used as collateral.  Through acquiring the capital necessary for growth without taking on any debt, you strengthen your financial position and make your balance sheet far more attractive.

Flexibility is an attractive aspect for many healthcare providers, and accounts receivable funding options allow you to use AR financing when you want, and for as much or little as you want.  This allows your firm to use the program when you want to, and not when you would like to undertake the collections activities of AR accounts yourself.  With a flexible relationship in place, exploration of growth opportunities can be approached without commitment.

Predictability is something that all businesses strive for yet few can achieve.  Even though you provide the work that ears money, the actual collection on that account is still potentially risky.  Med-Care Solutions AR programs completely eliminate risk, allowing for the predictability of monthly finances that will not only allow your business to run smoothly, but expand as necessary without headaches.  You know exactly how much cash is available at any time, and you can draw on it as you wish.  Contact us today with any questions, or to explore your options for AR financing.