Medical Receivables Factoring
Healthcare Factoring for service-oriented business within the healthcare industry (Invoice Factoring)
Medical Receivable Funding or MEDICAL FACTORING for Private and Commercial Insurance A/R (Medical A/R Factoring):
Medical Funding Source provides a marketplace for healthcare factoring and medical A/R for both private and commercial insurance, Medicare, and Medicaid.
We service all types of medical service providers with the opportunity to receive the lowest factoring rates for their medical bills under private/Commercial/Government insurance. We do not fund self pay but can help in servicing Self pay accounts. We can also loan against Aged Private/commercial/government claims even if aging is past 120 days. Provider needs to have at least 500K in Aged Claims to be qualified for loan or credit line against over 120 days aged AR.
Medical service providers who bill third-party payers for their services (HMO, PPO, Medicare/Medicaid) can receive the lowest factoring rates for the medical claims. We carry rates between 1.6 to over 2 % per month for factoring. This process is known as Medical A/R Factoring.
Our bidding factoring process is the quickest in the field. We only need the most minimal information to get immediate offers for Private and commercial insurance claims. We usually ask for aging report and ask for small application.
Our bidders compete to service your medical A/R by providing the highest upfront payment for your A/R bills (typically 80-85%) and the lowest factoring rates on total advanced and collected medical A/R.
We match your A/R to the right buyer for the best rates and funding process This matching means you will receive the best terms possible and solid reliable funder for this type of medical funding. The process is simple and transparent. Contact us to get more information.
How Does the Medical Factoring Marketplace Work?
A. Healthcare Factoring
The first option of the medical factoring model is a service-oriented business within the health care industry. Medical transcription services, medical staffing agencies, temporary nurse registries, outsourced medical coding companies, medical billing services, etc. can all greatly benefit by factoring their medical related business invoices!
A healthcare vendor sends invoices to a medical provider (i.e. physicians’ office, medical clinic, hospital, nursing home, etc.) for services rendered or goods provided.
The healthcare vendor then submits a copy of those invoices, in addition to any supporting documentation, to their invoice funding buyer who won the bid for the Factoring Request on Medical Funding Source.
Medical Factoring Marketplace
Next, the winning buyer purchases those invoices and advances 80-85%(based on their bid) of the invoice’s face value. Funds are typically deposited directly into the vendor’s bank account within 24-48 hours.
Winning Buyer will retain a 20% reserve as security in the event some of the vendor’s bills do not get paid or if the invoices had billing errors.
When the payment from the medical provider is received, the reserve is released back to the vendor, less the factoring fee.
Healthcare factoring is extremely beneficial to medical business vendors to maintain a positive cash flow when their customers (medical providers) take weeks or months to pay for goods or services.
B. Medical Receivables Factoring
Medical Funding Source medical receivables factoring includes a third party payer (i.e. Medicaid, Medicare or private insurance company) within the medical billing process.
A medical provider submits bills to a third-party payer (i.e. Medicaid/Medicare, HMOs, private insurances, etc.) for the medical services rendered.
The medical provider sends a copy of the bills/claims to their winning bid buyer on Medical Funding Source Medical Factoring Marketplace.
The winning buyer then purchases the medical provider’s claims/bills and advances up to 80%-85% of the expected net collectible value.
Funds are typically deposited directly into the medical provider’s bank account within 24-72 hours.
The winning Buyer/ uses the remaining 15%-20% (reserve) as a security in case some of the provider’s bills do not get paid or if they were billed incorrectly/offset Discrepancies.
The reserve, less the factoring fee, is released back to the medical provider after payments are received.
Medical receivables factoring is a great way for medical providers to bridge the cash flow gap that is frequently created by slow payments from insurance carriers and other third-party payers.
Medical Funding Source provide the lowest rates for medical factoring rates possible and match and pair medical providers with Medical Funding Source verified Medical Factoring companies/investors/buyers that specialize in medical factoring.
Why Medical Funding Source Medical Factoring Marketplace?
Medical Funding Source provides exclusive access to capital and funding sources for your Medical Factoring needs. We match provider’s medical receivables and treatments/services with bidders, to get the quickest bids and highest rates of return on A/R. In some instances, we will fund directly your private or commercial medical claims.
Our marketplace is Free for any Physician with No Contract or Commitment.
We provide a secure, confidential HIPAA Compliant Medical Funding Marketplace.
All our buyers and investors are committed to fast funding with required due diligence.We focus to be providing the lowest factoring rate for any physician!
Some of the Specialties We Provide Medical Factoring
- Ambulance and Medical transport companies
- Independent physician associations
- Associated medical groups
- Clinics, Drug counselors, Drug & Alcohol treatment centers and behavioral health clinics
- Medical centers & day surgery centers
- Medical staffing & Nurse staffing
- Dialysis facilities
- MRI centers and other diagnostic centers
- Durable medical equipment suppliers
- Nursing homes and Assisted living facilities
- ER management companies Pharmacies and Pharmaceutical companies
- General practitioners and Group Practice Physicians
- physical therapy groups
- Home health care companies
- Radiology centers
- Hospitals and Outpatient Facilities
- Rehabilitation-physical therapy companies
- Internists and Surgeons
Medical Factoring – FAQ
We offer several options. First, a full A/R Purchase (no recourse). Next, a partial upfront funding of the A/R with a percentage on the collection side. Also, we can provide ongoing funding for any workers compensation medical provider. We do also offer a line of credit against Workers Compensation A/R.
It takes about a week to 10 days to get funded under our medical factoring marketplace service.
The rates range from 1.5% to 4 % with an upfront payment on approval of about 80%-85% of Billed Charges.
In general, any healthcare provider being paid by medical insurance companies, Medicare or Medicaid with at least a volume of $100,000 per month and 6 months in business is a potential healthcare factoring client. However, here are specific targets with which we’ve been very successful.
Durable / Home Medical Equipment Companies – These providers bring medical equipment to patients recently discharged from the hospital, patients who have had an injury, patients who require breathing assistance with oxygen equipment, individuals who need mobility assistance such as canes, walkers, wheelchairs and many other scenarios. Cash flow is critical for these providers, as they must have inventory on hand when hospitals, doctors or therapists call them to deliver equipment to patients.
Home Health Care Companies – A patient requiring post-surgical care such as change of dressing, wound care, I.V. care or other home medical treatment will call (or the attending physician will call) a home healthcare company. The cash flow issue with this type of provider….all week nurses go out and do their jobs and on Fridays they submit their time sheets for payment. The home health care company will be paid in 30 – 40 days that’s the challenge.
Drug / Substance / Alcohol Abuse Centers – These rehabilitation centers are usually live-in facilities that provide medical and psychological services to its patients. Payments are never timely enough to fully fund their expenses. These centers are usually so busy that growth capital is always needed.
Imaging Centers – Centers that perform MRI, CAT scanning, X-Rays, PET scans and other imaging services for the most part lease their hugely expensive equipment. Missing a lease payment can close them down, as the equipment itself is the most vital part of their service. Cash flow issues can significantly affect their business.
Individual and Group Medical Practices/Walk-in Clinics – Doctor’s offices of all specialties are in need of cash flow. Many of them run their practices with their credit cards financing supplies, utility bills and other overhead expenses.
Medical Transport (Ambulance) – These types of services move patients from point A to point B, not necessarily under emergency conditions. Very high overhead in salaries, lease payments, fuel expenses, ambulance maintenance and liability/malpractice insurance literally eat up the sporadic cash flow received by these providers.
Group Homes (Adult and Children) – Adults and/or children in distress require a safe healthy environment to get back on their feet. Group homes are quite often the answer. State and Federal payments to these centers are always too slow for these providers and factoring usually proves to be the best (and maybe the only) answer.
Currently, we fund at least 100K in medical Factoring A/R (HMO/PPO/Medicare/Medicaid)
Winning Buyer usually is able to factor the provider’s AR that is under 120 days old.
No. Our Marketplace service does not get any payout or commission from the seller’s agreed payout nor the sale price! Our primary mission is to provide medical providers the best rates possible for their WC A/R.
The provider maintains responsibility for the billing and collection of its AR.
Advance Rate: 70%-80% of Estimated Collectable Value (“ECV”), determined by using industry standards and collection history.
Factor Fee: 1.5% – 2.5% of ECV for the first 30 days and a daily prorated rate thereafter. This fee depends on the procedures performed, monthly billing and strength of the client.
Please note that additional setup fees may apply and a sweep agreement with Provider bank may be required so winning buyer can take our portion of the proceeds out first.
Provider submit a claim to winning buyer that is estimated to collect $100.
Within 72 hours Winning Buyer will advance provider $75 (75% advance rate) on this claim.
If the claim is paid by the insurance provider within 30 days, winning buyer will be entitled to our advance ($75) plus our factor fee (2% of $100 = $2.00) and send the remainder ($23) to Provider
The medical provider is responsible for doing the follow ups with the insurance companies.
The payments from the claims go into a collections account that is a lockbox. That account is then swept into a reconciliation account. Buyer will take its portion out and send the remaining back to the provider. If the client’s current bank can execute this agreement, the payments from the insurance carriers can continue going to the same place as now.
Medical Funding Source Additional Benefits:
- Invoices or Medical Claims are funded within 24hrs.
- Eliminates the need for bank or SBA loans.
- Funding can begin within 3 to 5 working days.
- Start-up Medical Service companies are welcomed, No monthly volume requirements or penalties.
- You can focus on more pressing matters, such as the welfare of your business and employees.
Medical Factoring allows you to turn your idle receivables into cash and improve your cash flow to fund your business’s growth and expansion
Med Funding Hub Medical Factoring Marketplace
provides this service through our Bid/Offer Marketplace System which allows you to choose the best rates and best factoring for your business needs!
Ease your current financial pressures today by using Med Funding Hub Healthcare and Medical A/R factoring Marketplace !