Running a medical office, small hospital or other medical center has its unique set of challenges, such as balancing high quality care with patient affordability. From payments made by government agencies such as Medicare / Medicaid to those made by HMO and PPO insurance companies, waiting for claim reimbursement is an often viewed as a necessary cost of doing business by medical practitioners.
But it doesn’t have to be. Thanks to medical receivable factoring, you can work with an invoice factoring company to get the cash you need right away to cover its operational costs such as overhead, payroll, insurance and even medical equipment leasing.
Choose to Lease Rather than Buy with Medical Receivable Factoring
With new medical technologies and diagnostic equipment coming out all the time, it is hard to keep pace with all the latest gear. One way many medical offices are reducing costs is by leasing medical equipment rather than outright purchasing it. Since this new equipment is likely to be dated in a few years anyhow, this cost-saving move also has a lot of common sense.
With medical factoring, you can use your existing claims as collateral in order to secure a lump sum of cash to go toward leasing state-of-the-art medical equipment. Rather than using lengthy credit checks or FICO scores, the insurance agency’s reputation for payment will most significantly determine your eligibility for invoice factoring. Though rates vary, most medical factoring companies charge between 3 to 8 percent rate in order to get you the money right away. Medical factoring companies then pay you the cash you need in less than 48 hours. Try getting that from an HMO.
Use Factoring Medical Receivables to Lease Innovative Equipment
Having the most advanced equipment can often lead to superior diagnostics enabling improved care for patients. With patients demanding higher quality care and regularly seeking “second opinions,” they want the most advanced diagnostic capability when they visit the doctors. Factoring medical receivables can give your clinic an edge by enabling it to lease more advanced equipment that is more desirable to patients and gets improved results.