Medical receivables factoring can be a great option for many practices waiting on insurance payments but need the money for daily expenses now. With insurance payments taking any where from 30 to 90 days, waiting is not always an option. Medical receivable factoring will free up those funds and only cost you a small percentage, allowing you to meet your regular financial needs as well as any that may be unexpected.
Medical receivables factoring includes a third party payer (i.e. Medicaid, Medicare or private insurance company) within the medical invoicing process. Payments from these third party payers can take any where from 30 to 90 days to receive, at times longer. They clog cash flow within many medical practice, especially small practices or those just starting out. The medical receivables factoring process takes these accounts receivables insurance payments and offers “x” amount of funds in return, charging a fee for their services.
The process is simple, the benefits are eminence, making Medical Receivables Factoring a great option for nearly any medical practice. If your practice has a block with its cash flow, turning to a factoring company may be the best option. They will get you the money your practice needs quickly and take away the wait of third party payments. Your medical practice will find financial stability just by taking part in this simple medical factoring process.