Factor Your Medical Receivables with Exclusive Programs for Healthcare Industry

Factoring is when a business sells its receivablesfrom the private insurance
for a service or product delivered to anothercompanies or government is too small each
business. Many people in the healthcare industrymonth for a factor to be interested.
think that medical receivables can't be factoredThese are small chiropractors, dentists, cosmetic
because the "customer" is a person and not asurgeons and Lasik doctors (often
business. But medical receivables can be factorednot covered by insurance) and some nursing
because in most cases, your payment comeshomes because of credit problems.Medical
from Medicare, Medicaid, Blue Cross/Blue Shield,receivable factoring companies all have different
Aetna, etc. In other words, the payment isminimum monthly net
coming to you from a business, so thecollectable amounts, so ask your broker for the
receivables CAN be factored.In the past,one that will be able to help your
healthcare professionals could depend on efficientbusiness. Some work with amounts as small as
operations to keep$35,000-$50,000, others have a
their cash flowing, but that often is not enoughminimum of $200,000.Once your account is set
now. Increased costs and longerup with the factor, you will receive up to 85% of
times for insurance companies and Medicare tothe
pay the bills are making itinvoices within hours of turning them in each
impossible for them to keep their practicesweek. When the bills are finally paid,
running smoothly.Most factoring companies do notyou will receive the rest of the amount owed,
factor medical receivables, but there are severalminus a small fee. The fee depends on
that specialize in this niche. They fully understandmany things and will probably range somewhere
that accounts that are paid bybetween 2% and 6%.You will lose all the stress
third party payors take more due diligence andof not knowing when you will be paid for the
more things have to be looked atwork you
than with "regular" factoring. They know theseare doing. You'll be able to pay all your vendors
receivables are filed and paidand staff on time, you'll be able to
differently by different states and then havekeep up with all your bills. You will even be able
elaborate payment methods andto hire more staff or buy more
computations. There are government andequipment, because you'll know you can accept
insurance regulations, delayedmore business.There have been instances when a
reimbursements, HMOs, contractual allowances,medical business has been on the brink of
multiple payors and many morebankruptcy and decided to try factoring as a last
challenges that are only found in the healthcareditch effort and it saved them.
industry. The factors who specializeThey were able to turn everything around and
in your industry know all the lingo andare thriving now.Factoring should be considered as
terminology and will immediately understanda tool for growth and management, not as a last
your needs.The healthcare businesses that willresort to save your business. Unless your
most easily be approved for factoring are: Acutepractice has very expensive equipment or
or Rehab or Specialty Hospitals, Physicians,diagnostic devices, your largest asset is its
Surgery or Imaging Centers, Dialysis oraccounts receivables and these assets
Urgent Care or Rehab Centers, Ambulancecan be used to keep your business running
companies, Medical Labs, DME/HME,smoothly and growing.Donna Poisl is President of
Osteopaths, Oral Surgeons, Pharmacies, HomeCreative Funding Solutions. CFS works closely with
Health Care and Workers Comp
Healthcare Providers and some Chiropractorseveral of the best factors in the country, each
groups.There are certain types of health relatedwith different rates, fees and
businesses that might be more difficult torequirements and is able to find the best one for
factor, mostly because the net collectable valueeach client.