Turn Healthcare Invoices into Fast, Reliable Cash
Medical Factoring
Medical factoring is accounts receivable financing for healthcare providers that accelerates reimbursements from insurance companies and private payers. At Commercial Finance Partners, we advance a portion of the invoices owed to you, reducing delays and stabilizing cash flow in healthcare practices or facilities.
Customer Testimonials
Medical Factoring Services
Healthcare providers often wait weeks or months to receive payments from insurance carriers, creating cash flow bottlenecks that can affect patient care and facility operations. Medical Factoring alleviates these issues by converting your receivables into immediate working capital. Whether you run a clinic, hospital, or specialized practice, this solution helps fund equipment upgrades, payroll, and general operating expenses without relying on traditional loans.
Commercial Finance Partners handles the due diligence of verifying insurance claims, payer reliability, and compliance protocols. By advancing funds upfront, we allow you to focus on delivering top-notch healthcare services instead of chasing overdue payments. Our approach is discreet, efficient, and tailored to the complex reimbursement structures common in the medical industry.
Faster Reimbursements:
Get capital promptly, bypassing long insurance processing times.
Improved Cash Flow:
Cover daily expenses, payroll, and potential expansions without financial strain.
Reduced Administrative Hassle:
Transfer much of the claim follow-up and collections work to our experts.
Greater Operational Flexibility:
Invest in new equipment or services, knowing your inflow is more predictable.
Medical Factoring Business Case Studies
Medical Factoring Supported a Primary Care Clinic
Stabilized income amidst insurance delays:
- Maintained top-quality staff
- Expanded diagnostic services
- Reduced patient waiting times
- Enhanced facility upkeep
- Ensured smooth billing processes
Medical Factoring Boosted a Specialized Surgery Center
Funded new operating room equipment:
- Sped up surgical scheduling
- Reduced backlog of procedures
- Improved patient outcomes
- Attracted leading surgeons
- Maintained a high standard of care
How Medical Factoring Helped a Physical Therapy Chain
Balanced multipoint reimbursements:
- Streamlined multi-location budgets
- Invested in staff training
- Expanded care programs
- Lowered financial risks
- Strengthened patient satisfaction
The importance of
Medical Factoring
Why Choose Commercial Finance Partners:
✦
We specialize in bridging payment gaps caused by insurance reimbursement timelines.✦
We handle billing verification and compliance checks to reduce administrative burdens✦
We structure fast and flexible funding for diverse healthcare environments.✦
We maintain clear communication about claim statuses and advances.✦
We strive to strengthen your practice’s ability to deliver uninterrupted patient care.
How Medical Factoring Works
Medical factoring is accounts receivable financing tailored for healthcare providers such as physician groups, skilled nursing facilities and other healthcare entities. It involves selling invoices to a factoring company, and the funds received can cover payroll and operating expenses while you wait for payments from Medicare, Medicaid and other insurers.
Across the factoring industry, advances typically run 70% to 90% of unpaid invoices, and fees usually run 1% to 5% per 30 days. Commercial Finance Partners advances 90%+ on eligible receivables, funded from our own balance sheet.
Sources: Bankrate; U.S. Chamber of Commerce.
Medicare Rules for Medical Receivables
Government payers add a constraint. Except in limited cases, Medicare does not pay amounts that are due a provider to any other person under an assignment, a power of attorney or any other direct payment arrangement. Medicare may pay an agent that furnishes billing and collection services only when specific conditions are met, and payment to an agent is always made in the name of the provider.
Sources: 42 CFR 424.73.
Healthcare staffing firms can compare staffing invoice factoring, and practices that bill patients directly can review business-to-consumer invoice finance.
Medical Factoring FAQs
What is medical factoring?
Medical factoring is a type of accounts receivable financing tailored for healthcare providers such as physician groups, skilled nursing facilities and other healthcare entities. It involves selling invoices to a factoring company. The funds received can cover payroll and operational expenses while waiting for payments from Medicare, Medicaid and other insurers.
Can Medicare claims be sold to a factoring company?
Medicare restricts it. Except in limited cases, Medicare does not pay amounts that are due a provider to any other person under an assignment, a power of attorney or any other direct payment arrangement. Medicare may pay a billing and collection agent only when specific conditions are met, and that payment is always made in the name of the provider.
How much does medical factoring cost?
Factoring fees usually run 1% to 5% of the invoice value per 30 days, and advances typically run 70% to 90% of unpaid invoices. Commercial Finance Partners advances 90%+ on eligible receivables, funded from our own balance sheet. Your fee depends on the invoice amount, your sales volume, your payer’s ability to repay and whether the agreement is recourse or non-recourse.
The financing solutions provided by Commercial Finance Partners were exactly what I needed. Their team was professional and helped me every step of the way
Matthew Rodriguez Business Owner