FACTORING
MEDICAL RECEIVABLES
Medical receivables factoring is the purchase of accounts receivable from a medical services provider at a small discount. It is designed to dramatically improve cash flow for service providers who choose not to wait 30 days or more to receive payment for the medical services they provide. Medical facilities, hospitals and a host of medical service providers are now able to improve their competitive position by leveraging their receivables using medical factoring. Many industries have benefited dramatically from accounts receivable funding and have used this service for decades. The majority of medical service providers and practitioners, however, are unfamiliar with medical factoring and how this powerful financial tool will enable them to expand their practice, upgrade facilities and equipment and/or reduce payables and operating costs. Healthcare providers face a growing number of challenges: Solving daily working capital needs Burgeoning population of aging baby boomers Reduced payments Spiraling practice costs Denials from payers Changing technology Electronic medical records Increasing patient demands Protecting accounts receivable Regulatory intervention and restrictive banking policies Medical factoring, or medical receivables funding is a means by which the healthcare provider receives immediate cash for billings to third-party payers (i.e. commercial insurance companies, HMO’s, Blue Cross/Blue Shield, Medicare, Medicaid, etc.). We purchase your billings and collect payments from the third party payers A Rapid, Simple and Easy Working Capital Strategy Factoring-Accounts-Receivables accounts receivable funding programs are targeted to the healthcare industry. Providers use the cash infusion derived from medical accounts receivable funding as unrestricted working capital for business growth, acquisitions, equipment purchases and debt refinancing. Factoring-Accounts-Receivables’s knowledge of healthcare, third-party reimbursement, and healthcare finance delivers to clients superior value-added funding solutions. At Factoring-Accounts-Receivables, providers usually receive cash within 24 hours of submission of claims. We offer medical accounts receivable funding for healthcare clients whose funding needs range upward from $50,000 net collectable value. Accounts receivable funding is a $264 billion financial industry that provides cash infusion to a wide variety of businesses of all sizes, including Fortune 500 companies. MAR funding is accounts receivable funding customized for healthcare providers. Providers use the cash infusion derived from medical accounts receivable funding as unrestricted working capital for business growth, acquisitions, equipment purchases and debt refinancing.
Those poised to benefit most include:
Acute Hospitals LTAC Hospitals Rehab Hospitals Specialty Hospitals Physicians Surgery Centers Imaging & MRI Centers Dialysis Centers Nursing Homes ER management companies Home Health Care Medical Labs DME/HME Rehab Centers Chiropractors Osteopaths Oral Surgeons Urgent Care Centers Pharmacies Workers Comp Healthcare Providers Medical staffing services Hospitals Surgeons Anesthesiologists Specialists Outpatient facilities Rehabilitation centers Medical Centers Physical therapy groups Assoc physician groups Ambulances & Transport By selling (or factoring) your medical accounts receivables, you no longer must wait 30-90+ days for insurance reimbursement. Enjoy a dependable, weekly source of funds within about seven days of patient treatment!
Qualifying Receivables: Non-Qualifying Receivables: Blue Cross/Blue Shield Medicare Medicaid HMO's HPO's PPO's Commercial Insurance Corporation & Agency Contracts Self Pay Personal Injury Dental Some Workers Comp We don’t just fund your healthcare business, we know your business. Factoring-Accounts-Receivables has successfully provided funding solutions for growth as well as to avoid pending bankruptcy. In some cases, Factoring-Accounts-Receivables's funding providers have set new judicial and legal precedents for innovative post-petition bankruptcy funding so that medical facilities and practices can continue without interruption in service to their patients as they work through reorganization.
Financing Parameters: Transaction Size: Typically up to $10,000,000 in net monthly billings Minimum Monthly Factoring Requirement: $50,000 Minimum Contract Term: 12 month commitment Pricing: A flat discount rate is determined during account setup and due diligence. Typically the discount rate is about 1/10th of 1% per day and is charged PER DAY, NOT based on an average payment cycle Parameters: Must be able to obtain clear title to Accounts Receivable. Requires a personal guarantee. Geographic Area: Nationwide Types of Clients: Physicians, Group Practices, Durable Medical Equipment Companies, Skilled Nursing Facilities, MRI Centers, Surgery Centers, Hospitals, Home Infusion Providers, EMS/Ambulance Companies, and any other medical provider with traditional third-party insurance claims. We may look at chiropractors, workers compensation and self pay on a case-by-case basis. Factoring-Accounts-Receivables realizes that a successful healthcare practice depends as much upon effective financial management as it does on providing quality care. For this reason, an increasing number of healthcare providers are looking for finance companies that can help them handle their cash flow requirements. We can facilitate financial funding of medical receivables and have a well seasoned staff that was created specifically to handle this unique financial niche. We can help you bridge the long delay between the time you perform a medical service and the time you are ultimately paid. So now, instead of waiting 30-90 days for insurance reimbursement you can enjoy a dependable, weekly source of funds within about seven days of patient treatment! |
ACCOUNTS RECEIVABLE PURCHASING FACTORING QUESTIONS AND ANSWERS DEBITOR-IN-POSESSION FINANCING
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