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Medical Accounts Receivable Financing

Medical Accounts Receivable Financing

There is a common misconception in the medical field that alternative forms of financing in order to secure necessary cash to cover expenses is difficult to secure or is “loan based.” When physicians, medical facilities, surgical centers and specialists find themselves in the position of owing for bills in the nature of payroll, rent, supplies and ancillary costs while having enough theoretical income to cover them, yet not showing enough cash in the bank to actually pay them due to the slow-moving process of collections, measures must be taken in order to secure the cash that will keep the facility open during the process of collecting the money that is owed to you.  Even though you have provided more than enough services to earn the necessary money, those payments take more time to collect than you have, and you find yourself struggling to pay your own expenses.  Loans in the traditional form are generally secured against assets of the facility, from the machinery to the accounts receivable.  However in most cases it is difficult to actually get a traditional lender to provide a loan using accounts receivable as collateral, due to the fact that it is not guaranteed.  An additional drawback to traditional loans against your assets is that you have to pay the loan principal back along with interest even in the case where you were not able to collect on the accounts receivable.  This situation may bide you some time, but if you are not able to collect on those accounts receivable you will be in a worse situation than before in that you now owe additional interest.

Alternative financing programs available through Med-Care Solutions involve “medical account receivable financing.” What this means is that we will purchase your existing accounts receivable for a lump sum which will be paid directly to you within a short time frame, usually around fourteen days or less.  You can utilize that money in any capacity you feel necessary, as there are no restrictions on how it is applied the way a traditional loan will be.  Through the transaction, we assume 100% of the risk associated with bad debt as we are now the owner of the account.  If the debt is never collected or if it takes an extremely long timeframe to be paid, you need not be concerned because you will never have to pay that money back to us.  It is yours and you will be able to keep it free and clear.

Many medical facilities explore medical account receivable financing programs as an ongoing revenue stream, as they can now accept patients that were once considered “too risky” for collection.  Through an arrangement with Med-Care Solutions, we continually purchase the accounts receivable as they are accumulated by the facility, assuring that payment for services is received in a timely manner from then on.  The added costs of collections becomes a thing of the past, as you can now concentrate on providing care and not worrying about collecting the amounts owed to you.  This streamlining of the process not only saves money in accounting costs, but reduces the pressures felt by so many medical providers today.  Never worry about being paid again, Med-Care Solutions is here for you.