Working with a well established medical factoring company allows you to invest your time and expertise where it counts, into developing your business and clientele. Working directly with insurance providers should be a simple process of being paid for work completed. Most often, this is a convoluted and time consuming process which may take up to half a year to fully resolve.
Incorporating factoring into your business can significantly assist your healthcare practice in three primary ways. First, the time between billable service and resolution of payment is reduced from an average of three to six months when working directly with an insurance provider down to an average of 48 hours. Second, date of payment is made predictable, which simplifies the process of creating a month to month budget. Lastly, medical factoring companies translate the work you do into the complex language of medical billing and coding, preventing costly errors and allowing you to engage in more constructive business building practices and client interactions.
Most insurance companies take anywhere between three and six months to process a claim and distribute funds. If uncertain payment dates and prolonged periods between date of service and date of payment is negatively affecting your bottom line, factoring can help. When this income is withheld, this also prevents you from reinvesting capital back into your organization.
A medical factoring company works by purchasing your invoice and loaning you the reimbursement amount, distributing funds within 48 hours. Well-established companies will offer loans with interest levels as low as 2%. After you receive your payment, your role is essentially complete. Any final details and paperwork is processed between the factoring company and the insurance provider, including a full payment of your short term loan. This means that if you provide a billable service on Wednesday, you will receive payment on Friday. You are then able to immediately reinvest these funds as needed.
Factoring can also help in reducing or eliminating the complexity of medical billing and coding. Processing claims and keeping current with ever changing coding procedures takes time away from engaging in more constructive business building practices and client interactions. Outsources this work to professionals lets you make the most efficient use of your time.
Much like human beings, businesses require stability to thrive. Working with an medical factoring company can significantly increase balance and consistency for your most important stream of income. This allows you, your employees and your clients a full sense of confidence in the long term health of your business.