Why You Should Use Medical Accounts Receivable Financing
If you were to take a look at the balance sheet of a healthcare facility, such as a hospital, a dentist's practice, a medical office, a clinic, or nursing home, then one of the largest assets you would see specified within the terms of the balance sheet would be the "medical accounts receivable". Given the high value of these, it would seem strange that they would be the feature of the healthcare facility that creates the greatest amount of problems in logistical terms, and which when not handled correctly, can even cause the facility to become insolvent.
The reason for this is due to the fact that the medical accounts receivable are assets that typically take a considerable period of time for the payment associated with them to be released and so this means that in the interim period between the current period of time and the actual settlement of the accounts, the facility is still incurring expenses. Money is the lubricant of the machinery of business, as without the business cannot hope to pay staff who will man the services, nor can the business purchase the supplies that will be used to help treat patients who come in through the door.
Studies have been carried out by a variety of different organizations, all of whom who had different mandates, into the most challenging aspects of being a healthcare worker. The results were unanimous: chasing up, and attempting to settle, outstanding medical accounts.
Indeed, many healthcare providers have lamented that one of the most galling features about these is that it saps their time and energy which could have been better expended treating to their patients and clinical workload. Instead, they are forced to play "catch up" with a mountain of red tape, and 3rd party payors who drag their feet.
It is for these reasons then that medical accounts receivable financing is an area of business financing that can be a godsend for the healthcare facility, as it allows them to not only receive the money that they are legitimately owed in a greatly reduced timeframe, it also eliminates their need to be involved.
One interesting feature of the medical accounts receivable financing is that it is not actually a loan in the traditional sense of the word, and so the consequence of this is that there no debt incurred on the balance sheet of the healthcare facility. Therefore, in the event that the accounts are not honored, this will not have an adverse or detrimental impact on the credit score of the business as a whole.
As opposed to waiting upwards of 120 days for the insurance companies to wire the money owed on the accounts, using medical accounts receivable financing, the healthcare facility or its agents, will be able to acquire a sizeable portion of the money on the account in no more than a week. All that is charged is a flat fee, which is very reasonable, and when considered against the benefits it provides, seems more than fair.
The reason for this is due to the fact that the medical accounts receivable are assets that typically take a considerable period of time for the payment associated with them to be released and so this means that in the interim period between the current period of time and the actual settlement of the accounts, the facility is still incurring expenses. Money is the lubricant of the machinery of business, as without the business cannot hope to pay staff who will man the services, nor can the business purchase the supplies that will be used to help treat patients who come in through the door.
Studies have been carried out by a variety of different organizations, all of whom who had different mandates, into the most challenging aspects of being a healthcare worker. The results were unanimous: chasing up, and attempting to settle, outstanding medical accounts.
Indeed, many healthcare providers have lamented that one of the most galling features about these is that it saps their time and energy which could have been better expended treating to their patients and clinical workload. Instead, they are forced to play "catch up" with a mountain of red tape, and 3rd party payors who drag their feet.
It is for these reasons then that medical accounts receivable financing is an area of business financing that can be a godsend for the healthcare facility, as it allows them to not only receive the money that they are legitimately owed in a greatly reduced timeframe, it also eliminates their need to be involved.
One interesting feature of the medical accounts receivable financing is that it is not actually a loan in the traditional sense of the word, and so the consequence of this is that there no debt incurred on the balance sheet of the healthcare facility. Therefore, in the event that the accounts are not honored, this will not have an adverse or detrimental impact on the credit score of the business as a whole.
As opposed to waiting upwards of 120 days for the insurance companies to wire the money owed on the accounts, using medical accounts receivable financing, the healthcare facility or its agents, will be able to acquire a sizeable portion of the money on the account in no more than a week. All that is charged is a flat fee, which is very reasonable, and when considered against the benefits it provides, seems more than fair.
Source...