When you are in the medical field, billing insurance is a critical part of your practice, but the process can be tedious. While most offices do have staff onsite to monitor this processing, it is still a difficult task to master. Therefore, if you are interested in utilizing healthcare financing, don’t add more staff to your practice, instead consider medical factoring as a solution to this issue.
What is Medical Factoring?
Even if you have staff onsite to manage insurance claims from start to finish, it can sometimes be weeks or even months before you receive payment in full for services rendered. This means that most medical professionals are constantly battling with healthcare financing to achieve steady cash flow. This is where medical factoring can be useful.
In medical factoring, you will be advanced a percentage of the claim upfront and the final amount once the insurance company pays out. For a fee, you will receive your payment immediately. When you receive payment upfront, the growth and productivity of your practice are supported.
How Does it Help with Growth and Productivity?
Let’s face it, every business prefers getting paid upfront. However, in most cases, this doesn’t happen in the medical field. However, did you know that medical factoring can help the growth and productivity of your practice? How do you ask?
First of all, the staff that is currently focused on processing insurance claims can stress less and focus more on the day-to-day operations of the office. You will be able to retain your existing patients and attract new ones because your client relationships will be addressed and enriched.
Additionally, medical factoring provides you with immediate revenue, which means that you have assets that can be used as leverage. Unfortunately, due to financial instability, advancements and improvements are often forgotten. However, if you can show that you have a steady income, you will be more likely to obtain lines of credit and loans than you were before.
Bottom Line
Unfortunately, in the medical world, finances can be a bit shaky because you have to wait so long for insurance companies to pay out on claims. However, with medical factoring, you can change that. Medical factoring gives you a percentage of the claim upfront so you’re not left waiting and wondering when payment will come. The remainder of the claim will come when the insurance company pays out.