| Medical Billing Articles (updated Frequently)
|
| How to Finance your Medical Office, Medical Supply or Medical Testing Company |
| By: Invoice Factoring Group |
Although many experts speak of gloom and doom in the medical
industry, the fact is that this industry keeps growing by leaps
and bounds. Every year, the demand for medical services, medical
testing (e.g. MRI Centers, Testing Centers, etc) and medical
supplies keeps getting stronger. This trend is expected to
continue as the population ages.
However, even though the growth trend looks good, running a
medically related business keeps getting more and more
challenging. In the past, doctors and medical suppliers could
expect to get large and quick reimbursements for their services.
Cash flow was reasonably easy to manage. However, Medicare,
Medicaid and 3rd party insurance companies have put in place
strict compensation guidelines. These guidelines can be
summarized in two simple points: you can look to receive less
money than before and you should be prepared to wait longer to
get paid.
This creates a financial "perfect storm" for medical industry
companies. On one hand, you are getting paid less and waiting
longer for your money. On the other hand, your operating
expenses remain the same or perhaps are higher. You still need
to pay your employees and your suppliers. In almost all cases,
this limits your ability to pursue new opportunities and grow
your business. In some cases, it may even threaten your ability
to continue to operate your business.
Is there a way to "fix" the cash flow problem?
If your business's main cash flow problem is not being able to
afford to wait 30 to 90 days to get paid by insurance companies
and Medicare, then factoring
your invoices could be the right solution for you.
The factoring proposition is very simple. Factoring is a way of
financing, in which a factoring company provides you with
advance payments based on your outstanding accounts receivable
(or invoices). You get funding as soon as you invoice. The
factoring funds it and waits to get paid until the insurance
companies or Medicare pay the invoices.
Factoring has advantages over loans and lines of credit. First,
factoring financing lines do not have arbitrary limits. The
maximum amount of monthly financing is solely determined by your
ability to invoice. If your business grows, your financing grows
automatically. Also, factoring companies don't require the same
collateral that banks do, so new businesses or doctors' offices
can usually qualify easily.
How does medica
l factoring work?
The process is fairly simple. Once an agreement is established
with a factoring company, it works as follows:
1. Your office submits your weekly (daily or monthly) billings
to the insurance company and to Medicare/Medicaid. (note:
sometimes this task can be handled by the factor on your behalf)
2. Your office sends a copy of the billings to the factoring
company.
3. The factoring company advances you up to 85% of Net
Collectables within 48 hours. Funds are sent by wire or direct
deposit. The remaining 15% is called a "reserve" and used to
settle billing discrepancies at time of payment. This is
returned to you once the invoices are paid.
4. The factoring company waits to be paid by the insurance
company or Medicare/Medicaid.
5. Once the factoring company is paid, they settle out the
transaction and rebate you the remaining 15%, less their fee.
The advantage of medica
l factoring
Factoring is ideally suited for medical offices and testing
centers that are growing quickly and cannot afford to wait the
usual 30 to 90 days that it takes to be paid by insurance
companies or Medicare. It can provide you with ongoing
financing, streamline your cash flow, and most of all, relieve
the stress of not knowing when you'll be paid.
Copyright © 2005 Commercial Capital LLC All rights reserved.
This article may be reprinted, provided the resource box is
included with live links
About the author:
About Invoice Factoring Group
Invoice Factoring Group
(http://factoring.qlfs.com)
can provide you with a free medica
l and doctor office factoring quote. Marco Terry, its
president, can be reached at (866) 730 1922.
|
|
| Keywords: Medical Claim demand for medical, medical industry, cash flow, medical, Medical Claim, services medical testing, factoring company, medical services medical, factoring, medically |
| Medical Billing Product Links
|
Medical Billing Software, Medical Practice Management Software
ASAP delivers the ultimate in medical practice management software and medical billing software, backed by the best support in the industry. Provides to notch quality Medical Billing Software, Medical Practice Management Software ... developing ASAPOnline, an Integrated Practice Management medical billing software application, built for the future ...
Medical Management Systems
Obtain information about Medical Management Systems and everything related to Medical Management Systems from Soft-Aid.
Medical Billing Software from AdvancedMD
Medical billing software - AdvancedMD offers web-based medical billing and practice management software with an integrated electronic medical record (EMR) function. With software adaptable to many small practices and billing services, it's no ... AdvancedMD Software brings you two innovative products, AdvancedMD, a full-featured medical billing and scheduling ...
Medical Billing Software / Practice Management Software : athenahealth
About athenahealth. We believe that health care should be about health and care, not about the complexities of business. ... combines web-based medical office management software, unrivaled payor knowledge, and ... practice management system functionality, billing rules, electronic eligibility checking and ...
Medical Billing Software, Medical Practice Management Software, Medical Billing Software
ADS delivers the ultimate in medical practice management software and medical billing software, backed by the best support in the industry. Provides to notch quality Medical Billing Software, Medical Practice Management Software ... the premier conference in the field of. Electronic Medical Records. Visit us at Booth 513 ... MedicsElite Animated Demos. Electronic Medical Records (EMR ...
Electronic Medical Billing Software | Easy Medical Billing Software | Billing Medical Software Webmed | Billing Medical Service Software | Billing Medical Scheduling Software | Billing Medical Program Software | Billing Medical Practice Software | Billing Medical Opportunity Sales Software | Billing Massage Medical Software | Billing Management Medical Practice Software | Billing Insurance Medical Software | Billing Institution Medical Software | Billing Home Medical Software | Billing Durable Equipment Medical Software | Billing Dme Medical Software | Billing Demo Medical Software | Billing Cor Medical Optimedirect Software | Billing Computer Medical Software
|
