It takes a strong and compassionate person to work in hospice care. Patients enter the facility hoping for peaceful surroundings in the last days and weeks of their life. As the director of a hospice care organization, it is your job to ensure that patients are treated respectfully and have everything they need to remain as comfortable as possible. This desire can run in direct opposition to Medicare's insistence on complicated repayment structures and caps on benefits that dying patients can receive. The conflict of running the business side of your organization can have a direct impact on the quality of care your staff is able to provide to hospice patients.
At 1st Commercial Credit, we are very familiar with these types of dilemmas. It is something we deal with every day providing financing to hospice centers and other medical establishments. While other lenders take a one-size-fits-all approach to clients, we approach medical financing differently. Our account representatives know enough about Medicare, Medicaid and third-party insurance regulations to understand the problems you face with cash flow. Healthcare providers receive payment on outstanding claims slower than most other industries. This can create a serious cash flow shortage and unacceptable cuts in patient care.
Fortunately, our company has found an ideal solution to the problem of working capital shortages. A major part of our business consists of funding unpaid claims from medical facilities owed by insurance or Medicare.
We offer low financing rates and no hidden fees. Some of the other advantages to working with our company include:
After we have received your two-page application and supporting documentation, we assigned a net realized value (NRV) to your hospice center's unpaid claims. We then confirm the payment and credit history of the payor of the claims. It is important that you submit claims for factoring from insurance companies and other clients that normally pay your hospice center on time. The credit worthiness of your customer is the main tool we use in determining NRV and the advance amount we can offer you. We may not be able to offer you the cash flow that you need if we decide that your customer is not creditworthy.
We contact you with an application decision within 24 hours. You may request the full NRV of your unpaid invoices or just a portion of it. We typically offer lines of credit between $50,000 and 10 million dollars with our accounts receivable factoring program. After confirming your company's credentials and your customer's credit, we fund between 80 and 90 percent of the NRV within a few days. We then establish an escrow account to hold the remainder of the funds until we receive payment from the insurance company or a government program. 1st Commercial Credit charges a very low financing fee and this amount is deducted from your final payment.
Although the healthcare industry has been slower to catch on to medical receivable financing, companies that do apply with us often become long-term customers.
People who work in hospice and other healthcare specialties prefer 1st Commercial Credit because: