Healthcare & Medical Factoring

Stop waiting weeks for reimbursement – receive payment today

It’s no secret that third-party payers, including Medicare, Medicaid, workers’ comp, HMOs, and other private insurers can take much longer than desired to pay your bills. The good news is that you don’t have to wait weeks or months to collect on your medical receivables. If you provide medical or healthcare-related services of any type, we can help you.

Healthcare Factoring vs. Medical Factoring

These phrases are often used interchangeably and understandably so, but there is a commonly agreed upon difference. Simply put, healthcare factoring applies when there is not a third-party payer involved and medical factoring companies are used when there is a third-party payer involved.

Healthcare and Medical Receivables Factoring is Available For

  • Sole and Group Practitioners
  • Rehabilitation and Physical Therapy Facilities
  • Chiropractors
  • Durable Medical Equipment (DME)
  • Hospitals
  • Laboratories
  • Medical Billing Services
  • Medical Coding Services
  • Medical Staffing Companies
  • Medical Supply Companies
  • Medical Transcription Services
  • Medical Transportation
  • Nursing Homes
  • Home Healthcare Providers (Medical & Non-Medical)
  • Imaging Facilities (providers of MRIs, X-Rays, CT Scans, etc.)
  • Ambulance Providers
  • And more

Healthcare Receivables Factoring

Healthcare receivables are typically associated with customers who are not third-party payers. Some of the common sectors include medical transcription services, medical staffing companies, medical coding and billing services, medical supply companies, and more. By utilizing healthcare factoring, these vendors can enjoy the benefits of a virtually unlimited line of credit all based upon the services they’ve provided. The simple method of factoring healthcare receivables is as follows:

  • The healthcare vendor invoices their customer for work that has been completed. Some of the common customers will be hospitals, nursing homes, medical offices, etc.
  • Next, the vendor sends a copy of the billing documentation to the healthcare factoring company.
  • Within 24 hours or less, the factoring company will deposit funds into the vendor’s bank account. This amount is typically in the range of 85% of the gross invoice value.
  • The factor holds 15% while awaiting payment and handles collections on behalf of the vendor.
  • As soon as the invoice is paid in full, the factor releases the 15%, minus the factoring fee, back to the vendor.

Medical Receivables Factoring

Whether you are billing Medicare or Medicaid, third-party insurance companies, Blue Cross/Blue Shield, or HMOs, we have a factoring solution to help. By factoring your medical claims, you will benefit by receiving capital up-front, while the factor waits months for your customers to remit payment. The general process for factoring medical claims is as follows:

  • The provider submits the claims to the third-party payer as normal.
  • A copy of the paperwork is submitted to the factoring company.
  • Within 24 hours or less, the factoring company deposits funds directly into the medical provider’s bank account (typically around 85% of the net collectable value).
  • As soon as the claim is paid in full by the third-party payer, the factor releases the remaining 15% minus a small factoring fee.

Getting Started with Healthcare & Medical Factoring Companies

There are hundreds of healthcare and medical factoring companies in the marketplace today and finding the right one for your business can be a daunting task – but look no further, our dedicated specialists are standing by, ready to provide you with the perfect medical receivables factoring solution. Simply contact us today for a detailed discussion focused on your business and its capital needs. In most cases, you can begin funding your receivables in as little as 1-3 days.

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