What is Medical Factoring?
Medical Factoring is produced when a health care provider renders service or a manufacturer provides equipment to a patient and is waiting for reimbursement from an insurance company, HMO, PPO, or government source (including companies like Medicare or Medicaid). This type of funding is commonly used by healthcare providers and medical professionals of all specialties.
Advantages of Medical Factoring
The most important advantage of medical receivables factoring is that it can fix funding problems created by insurance companies. This common problem affects many healthcare businesses that are growing quickly. This solution can be used by any business that bills private or government insurance programs. Some examples of Advanced Funding Group’s medical factoring networks include:
- Medical offices
- Imaging centers
- Medical supply companies
- Medical staffing agencies
- Durable medical equipment providers
- Nursing homes
- And more…
How does Medical Factoring work?
These transactions are easily explained. You sell and assign your claims to a medical factoring company and the finance company advances funds for the claims. The finance company then holds the claims until it matures.
This is an example of a typical transaction:
- 1. You submit your approved claims to the factor
- 2. The factoring company advances up to 75% of the claim
- 3. The claim is paid in 30 – 120 days
- 4. The factor rebates the remaining 25%, minus the financing fee
Are you waiting to be paid by an insurance company, HMO, PPO, or government source such as Medicare or Medicaid? Contact us and let us explain how we can help get you the cash you need.