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Radiographs of the cash flow recovery

The current adverse financial structure of the healthcare industry has hospitals, medical groups, physicians and other providers in a dangerous situation brought. Cumbersome and bureaucratic third party billing systems with long delays in collection of cash flows and limited capital made contrary to growth. Nationally, two thirds of physicians work in practices that are configured as small businesses. Wage cuts of 18% in four years, coupled with rising malpractice premiums and other overhead costs, have threatened to put these business practices.

What Factoring “is not”

or a loan – Factoring is the sale of their medical claims for services already rendered

or offered by the banks – Factoring is no asset-based loan, nor is it a credit line similar to those offered by banks. Many of you already tried it and were surprised that the average practice may not have sufficient funds and assets with which to obtain sufficient working capital. Moreover, the application of the traditional bank loan approval process is lengthy and complicated. The debt has been created for the practice of payment was, and personal guarantees are required. The working capital arrangement is not limited in the amount of many bank products and is not subject “is called.” Bank of

Surveys of doctors have identified the following immediate needs:

The creation of a strong cash flow of trust

Acceptance is received the refund interval between the date of service provided and payment

Increase the total proportion of the claims raised

Lower administrative costs

Availability of cash for new equipment, extension offices, adding new partners and marketing practice

This “wish list” would be complete access to operating capital, which could be created out of debt. Medical practice would have the financial freedom to focus on business growth and patient satisfaction, rather than focusing on how to focus the next payroll or the payment of premiums to meet for medical malpractice.