4 Ways Claim Factoring Can Benefit Your Medical Facility

Buying advanced equipment, hiring qualified employees, or securing a bigger location can be challenging decisions, especially for a medical business owner. This is because medical providers are at a constant battle of collecting aging payments from scary insurance companies. Most of their cash is tied up in the claims submitted with a long waiting time before any payment is made.?

In this article, I want to discuss a very powerful solution tool that is used tremendously in the west but is yet to be adopted in the Middle East.

It is called claim factoring. The technique is very simple, factoring companies pay healthcare providers a substantial cash advance in return for the claims. The procedure could take anywhere between 48 hours to under 7 days. This is obviously a more ideal situation than having to wait 90-120 days to settle the claims, and this is something that the owners of medical businesses can certainly take advantage of.

Here are the top five reasons why medical factoring might just be the solution you are looking for:

1.Establish a solid base of cash flow.

Instead of waiting on insurance companies to settle your claim, a cash advance can be collected in just days of signing up with the right financing company. This helps you meet today’s challenges with greater flexibility rather than waiting half a year to plan your move.?

2. Hire Qualified Professionals.

Cash in hand at the right time allows you to make necessary hiring decisions in favor of your facility. You no longer have to compromise on the quality of welfare departed to your patients. You will build trust among our patients and become their first choice of facility they would prefer in times of need.?

3. Purchase World-Class Equipment.

With access to the latest medical equipment, your facility will lead the chart of top medical facilities in your region. The available working capital also allows you to pay your existing equipment suppliers on time and remove the burden of rising interest rates on late payments.?

4. Grow quickly and efficiently.

All physicians, surgical facilities, medical providers, and clinics are familiar with the pressures of covering ongoing costs associated with running a facility. With ample cash available to aid your business, you no longer have to worry about running out of capital mid-way through expansion. Medical factoring bridges the cash flow gap between service performed and reimbursements from third-party payers.

To summarise, medical factoring solves your cash flow problems when your business finds an opportunity to grow, but you exceed your current financial ability.

Selling your accounts receivables gives you the cash to meet payroll, take supplier discounts, purchase equipment, or increase staff—all of this without increasing your debt obligations. By factoring in your receivables, you can focus on delivering quality patient care and not on insurance payments.