Medical Accounts Receivables Are An Asset To Your Practice
The experiences that many physicians and medical providers will be exposed to when attempting to secure financing and loans will usually be an extremely frustrating process. When financing options are necessary in order to take the next logical step in the expansion process, the traditional loan system needs collateral in the form of tangible assets that can be seized and liquidated in order to recover the loan plus interest if it is not able to be repaid on time by the physician. What this translates to is an unfair risk-load on the medical facility to increase their monthly incomes in order to pay back the loan amounts along with the additional compounded interest. During the expansion process, this may prove difficult as the things that were needing to be funded may be completed in the form of hiring extra staff and expanding office spaces, as well as any other processes that were necessary in order to accommodate more patients, however the process of actually gaining those new patients may take longer than expected. In this type of scenario, the medical facility owes additional money each month and has not yet built up the number of patients that will provide those revenues, risking the physical assets of the practice as a result. If the loan can’t be repaid on time, the equipment is seized and you are out of business.
Medical accounts receivables are not considered an asset by most lending institutions due to the fact that they cannot be easily liquidated in order to generate cash. In many cases, the single greatest pool of potential cash within a medical facility is the accounts receivable in the form of the money that is owed to the practice for treatments that have been provided in the past, but which have not yet been collected. The issues with collection provide a problem for traditional institutions as they cannot be guaranteed as far as being collected upon, and with each day that they remain on the books it becomes statistically more and more difficult to collect, with a greater chance of default. Only an alternative physician financing program like the ones involving the purchase of medical account receivables through Med Care Solutions take these assets into account as a source of funding options, and through the participation in a program of ongoing accounts receivable purchases, many physicians have realized that they are not only a source of financing when necessary for things like expansion, but also as a source of guaranteed revenue that can be factored into the business and collections plan of the facility itself. Through an established and ongoing partnership, many physicians simply sell their ongoing qualified accounts receivable to Med Care Solutions for immediate payments to the facility, thus eliminating the collections process entirely and guaranteeing payment for the services that have been provided. With this type of alternative to the traditional loan process, or the traditional collections processes that have been a source of frustration for medical providers throughout history, many physicians are finding the options that were never available before, and opening up new doors to financial stability and progressive growth without risk. Contact Med Care Solutions today to find out more about our medical account receivables purchase programs.