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Medical Accounts Receivable Factoring

Factor Your Medical Accounts Receivables for Business Growth

Medical accounts receivable factoring offers medical providers fast access to the money they’ve already earned. Whether you are a new start up temp-staffing agency or have years of experience in the medical industry, factoring can help get your business access to the money needed to make payroll, expand to new facilities or simply improve cash flow.

Medical factoring with Factor Finders enables medical providers to provide quality care through proven financial management strategies.

Medical accounts receivable factoring advances funds to medical providers who bill third-party vendors. These payors include commercial insurance companies, HMOs, Blue Cross/Blue Shield, Medicare, and Medicaid.

How does medical factoring benefit healthcare providers?

Medical factoring benefits healthcare providers by providing them with immediate access to funds. Instead of waiting for slow payments from insurance companies or government payors, medical factoring allows healthcare providers to receive payment within days, thus improving their cash flow and enabling them to meet their financial obligations more effectively.

What are the causes of cash flow problems in healthcare billing?

Cash flow problems in healthcare billing can occur due to slow payments. Healthcare providers who bill private insurance companies, Medicare, or Medicaid often experience delays in receiving payments, which can lead to cash flow issues.

What types of healthcare providers and medical professionals can benefit from medical factoring?

Medical factoring is commonly used by healthcare providers and medical professionals of all specialties. This means that doctors, surgeons, dentists, chiropractors, therapists, and other healthcare practitioners can benefit from medical factoring to address their cash flow problems.

What is financing based on for medical accounts receivable factoring?

In medical factoring, financing is primarily based on the net claims. This means that the transaction is financed considering the actual amount that the insurance will pay for the claim, known as the net payment. It is worth noting that the net payment may differ from the initial gross invoice amount in certain cases.

What are the requirements for medical accounts receivable factoring?

Businesses should have average monthly billings of third-party receivables ranging from $35,000 to $500,000. Medical providers that exceed $500,000 per month in billings of net realized value and maintain $600,000 of total accounts receivable may qualify for our premier healthcare asset-based financing program.

Medical accounts receivable factoring is our niche market. Our medical factoring service bypasses bureaucratic billing structures and provides payment to the healthcare provider within days. Our network of medical factoring companies service the following:

  • Physicians
  • Nursing homes
  • Hospitals
  • Home healthcare companies
  • Rehabilitation/Physical Therapy companies
  • Durable medical equipment providers
  • MRI clinics
  • Radiology centers
  • Ambulance service providers
  • Laboratories

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Factoring for Medical Staffing Companies

Temp-staffing businesses, including new start-ups, are eligible for our receivables factoring services. Medical accounts receivable factoring covers all agencies with a $5,000 to $10 million monthly sales volume range. Medical invoices should not be pledged to any other entity including Medicare, Medicaid, or an individual.

Medical Accounts Receivable Factoring Services for a Variety of Clients:

  • Start-ups less than 3 years old without the established credit history needed for bank loans
  • Those needing enough working capital to make payroll
  • Those strategizing about new facilities or other growth strategies
  • Those wanting to restructure and operate after bankruptcy
  • Those who would benefit from expansion acquisition financing

Medicare and Medicaid

Medicare and Medicaid claims follow a distinct procedure when it comes to medical factoring, as they cannot be assigned like regular medical claims. To handle these particular claims, most medical factoring companies employ specialized methods. The processing of Medicare and Medicaid claims often involves the utilization of a specific bank account known as a sweep account, also referred to as a control account. However, it is essential to note that the precise approach employed may differ across different companies.

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“Our experience with Factor Finders has been excellent. When the first funding company we were referred to was not proven to be a match on our end, we were quickly given a second referral. The ease in which we were able to accomplish this for our startup company was made nearly stress free. We look forward to a mutually beneficial business relationship with the factoring company. We would highly recommend Factor Finders to others.”

— Nigelle, Healthcare, Pennsylvania

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