Doctors and other health care providers often struggle to prosper as they cannot afford to pay their staff on a weekly or bi-weekly while waiting much longer to get paid from the insurance industry. In the medical industry, it is not uncommon for repayment to take from 60 to 120 days. In a service industry with strong profit margins successful providers should not have to choose between gross revenue and cash flow. Selling these medical receivables can help the provider of services or equipment stay current with payroll, taxes, overhead expenses, or other obligations.
Cash flow is the lifeblood of any business. Financing the provider’s medical receivables accounts is one way to generate needed capital. Instead of waiting to receive reimbursement from third-party payers for healthcare services or goods provided, medical receivables financing allows providers to get a portion of that money sooner, thus accelerating cash flow. Providers considering medical receivables financing should become familiar with the structure and how it might impact their cash flow.
Medical professionals all have accounts receivables that are collected either 30, 60, 90, or 120 days. The Medcare Solutions program offers immediate cash to medical professionals and medical-oriented businesses by converting their medical receivables into liquid funds. Our funding partners provide an excellent solution for cash flow issues, growth capital, acquisitions, urgent financial needs, or reorganizations. A typical customer for this type of funding would include but are not limited to physicians, group practices, durable medical equipment companies, skilled nursing facilities, MRI centers, surgery centers, hospitals, home infusion providers, and EMS companies.
Any business-to-business company (meaning a business that sells products or services to another business) has accounts and invoices that do not get paid for 30, 60, 90, even 120 days. This has a negative effect on cash flow as the business owner is waiting to get paid on goods that have already been delivered or services that have already been performed, although the expense to the business has already been incurred.
Medical Receivables Financing can turn receivables into cash within 48 hours. In addition, the business owner receives payment on future invoices immediately, drastically improving cash-flow. With medical receivables, the loan is not based on the business owner’s credit, so our funding partners can fund all credit types.