Nursing homes, hospitals, clinics, and other medical establishments often wait several months to receive payments from patients and insurance companies. This can put them in the position of a serious cash crunch when they need liquid assets to purchase equipment, expand the organization, or just to pay everyday expenses. Slow payments are a notorious problem for nursing homes since Medicare, the insurer of most older Americans has a reputation for taking months to pay outstanding invoices.
Unfortunately, a lack of cash flow could have a significant impact on your organization’s ability to provide proper care for patients. If you can relate to this scenario, it may be time to consider medical factoring to provide prompt access to funds your healthcare organization needs.
What is Medical Factoring?
Selling unpaid invoices with the highest value to a factoring company is a quick way to obtain needed funds for your healthcare organization. The company purchasing the invoice will advance you approximately 75 percent of the value upfront and the remainder, less its usual and customary fees, once it collects final payment from your patient. Healthcare invoices are paid at their net realized value, which is the amount the insurance carrier is expected to pay based on its fee schedule.
A Short and Simple Application Process
If you have ever applied for a business bank loan, you will appreciate how simple it is to apply for medical factoring. In addition to the patient invoices you wish to sell, the company purchasing your invoices may ask you to provide additional financial documentation. The entire process takes about one week with funding coming shortly thereafter.
Contact Us to Learn More About Medical Factoring and Other Finance Options
Capital Connex offers factoring and several other alternative financing options to help you manage your healthcare business. Please contact us today to discuss these options or to start the factoring application process.