Medical Accounts Receivable Financing
What is Medical Accounts Receivable Financing? Medical receivable financing is a means by which the healthcare provider is granted an asset based credit line that is based on the net realized value for his/her billings to third-party payors (i.e. commercial insurance companies, HMO’s, Blue Cross-Blue Shield, Medicare and Medicaid).
For medical providers that have accounts receivable with a net realized value (NRV) of $500,000 or less, we offer our
medical factoring program which is a funding program that purchases your billings (net realized value) at a discount. Clients that exceed $500,000 in accounts receivable (NRV) and meet our criteria for financing will be proposed an asset based receivable financing program that is priced at a prime plus schedule.
1st Commercial Credit provides medical receivable funding for two types of medical provider clients. If you are a Medical staffing agency invoicing to a commercial account (i.e. Hospitals, Nursing Homes, etc.) please go to this web page "
Medical Staffing Finance".
 1st Commercial Credit realizes that a successful healthcare practice depends as much upon effective financial management as it does on quality care. For this reason, an increasing number of healthcare providers are looking for finance companies that can help them handle their cash flow requirements. 1st Commercial Credit can facilitate financial funding of medical receivables and has a well seasoned staff that was created specifically to handle this unique financial niche.
The long delay between the time you perform a medical service and the time you are ultimately paid, coupled with a bureaucratic and very cumbersome third-party billing structure has resulted in diminishing your business cash flow.
Our mission is to provide capital to a nationwide network of healthcare providers including, but not limited to sole practice physicians, group practice physicians, nursing homes, hospitals, home healthcare companies, rehabilitation -physical therapy companies, durable medical equipment providers, MRI, radiology centers, ambulance service providers and laboratories.
While many industries are very familiar with the use of accounts receivable financing to improve the consistency of their cash flow and increase their bottom line, the overwhelming majority of health care providers have never heard about this service, and do not realize what accounts receivable financing can do for them.
Frequently asked questions about our
healthcare provider financing program
Our Clients:
- Too new to obtain bank
financing (under 3 years old)
- Needs accounts receivable financing for payroll
- Needs expansion and/or working capital
- Needs acquisition financing
- Growth strategies, including new facilities
- Restructurings, DIP and post -bankruptcy
financings
Asset Based Revolving Line of Credit
Terms
Minimum of $500,000 of eligible
receivables based at NRV. Receivables must be payable by Commercial
Insurance companies, Medicare-Medicaid, Blue Cross-Blue Shield, HMO-PPO,
Municipalities and Institutions aged no more than 150 days from the
service date. Terms are 1 year minimum. Rates and fees may be fixed
fee financing or prime based. Typical 4 to 6 weeks from receipt of
initial underwriting package.
Mainstream Accounts Receivable
The "mainstream" types of accounts receivable that we will consider
for funding are accounts receivable which are generated by a
healthcare service company and are due from third party payors which
include the following payor categories: Medicare, Medicaid,
Commercial Insurance, Private Insurance, HMO/PPO, and Managed Care.
The average time to collections for most of the Accounts Receivable
that we fund range from 90 - 150 days (we will also consider
receivables which collect in longer time periods). Request a
proposal online
Accounts Receivable Which Are Non-Mainstream, But Are Acceptable:
We will also consider funding accounts receivable
whereby the payors are actually healthcare facilities themselves,
such as a nursing home or a hospital, whereby the healthcare
provider client is contracting to provide its services to the
healthcare facility. Other types of accounts receivable that we will
consider funding on a case by case basis may include the following:
non-litigation worker's compensation. Request a proposal online
Accounts Receivable Which Are Not Acceptable:
We presently do not fund accounts receivable that are
owed by patients directly (also known as self-pay). In addition, we
do not fund certain types of longer turning worker's compensation,
personal injury, or no-fault accounts receivable.
Nurse Registry (Medical) Temp Staffing Receivables Factoring:
We currently can establish factoring programs for
temporary employment staffing agencies for as little as $5,000 to 10
million a month volume. Temp-Staffing businesses generate commercial
receivables and fall under our commercial receivables program so
long as the receivables are not owed by Medicare, Medicaid or
individuals. New business start ups are welcomed. Request a proposal
for Medical Temp-Staffing Factoring
Account Receivable Financing Frequent Questions |
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