Medical factoring or healthcare factoring helps organizations and companies that bill private insurance companies like Medicaid or Medicare. This factoring helps solve problems related to cash-flow and late payments. This is used by medical professionals and healthcare providers of all specialities.
Only a few claims are paid quickly. Most medical insurance claims take 30-120 days to pay. This creates cash-flow problems for providers and suppliers. This problem affects not only large scale businesses but it also affects new companies. Medical factoring solves the problem of cash-flow and helps in the growth of the business. Vendors and providers benefit a lot from medical factoring.
You want to provide your patients and clients with top-notch care, comfortable environment, well-managed office, and technologically enhanced equipment, as a healthcare provider. To achieve all of these services and levels of comfort you might have to enhance your medical practice.
You need a have a proper business mindset, to develop your practice. This is tough to achieve for many practitioners, who would instead of billing their patients and customers rather invest their time in treating patients. To build a positive practice, you don’t have to be an expert when it comes to medical financing. Various strategies can support and help.
Over the past two decades, the trend towards large practice has been increasing. Independent Physicians Associations (IPAs) are obtaining other such associations, specialists are coming together, and many doctors and medical professionals are becoming a part of hospital-owned practices.
Having a large healthcare practice has many benefits like shared risk, better market access, peer support and knowledge, pooled capital, savings on high costs, a stronger negotiating position with the vendors, and more leverage with third-party funders.
The advantages are clear, but there is usually a large issue to expand and grow your healthcare practice. Whether it is purchasing new medical equipment, or hiring extra medical assistance and staff, or updating your technological systems, costs a lot of money.
And it does not matter if you are a dentist, home healthcare company, primary care physician, or radiologist, one thing is common with all of them. They all get payments very slow. Financing healthcare is extremely challenging and rough, especially when you deal with accounts receivable. There is a long haul between when services are provided and when the payment needs to come.
Now we will discuss 5 medical factoring strategies and ways to protect your cash flow and enhance your healthcare practice.
Collecting payment from the patients for your services has become extremely complex. You need to thoroughly go through the terms and conditions of the patient’s plans before the appointment. You will more likely get paid if you are accurate and can positively estimate the responsibility of the patient for a procedure.
The chances of getting the payment from the patient at the time of service are 70%, but only 30% once the patient leaves, according to the medical group management association (MGMA). Transparency is a vital key to have a proper payment collection. You need to properly showcase your medical payment policy on signs in the waiting area, during appointment schedules, and on your website to avoid problems.
You should also train and educate your staff about getting payments at the time of check-in. You must provide patients with various payment options such as credit cards, debit cards, checks, and cash.
CURRENT AND UPGRADED IT
You should always keep your IT current and updated. It can be expensive to upgrade your information technology systems, but it is extremely important and worthwhile. From sending e-prescriptions to maintaining health records and automating the orders of supply, modern technology systems make you more efficient and can directly have a good influence on your business.
Modern systems largely decrease the chance of authorization oversights or coding. Portals of patients can be beneficial with insurance verification and pre-certification. Reminders and appointment confirmation can cut down on expensive missed visits.
Medical factoring can also be extremely advantageous as it is supported by HMO’s, private insurance, Medicaid and Medicare. It also reduces the cost of collection services. Medical factoring is important and plays a vital role in many healthcare organizations.
Medical receivable factoring solves the problem of slow or delayed payments, by providing businesses with quick access to funds. There is not just quick financing but also is easily approved.
Factoring is beneficial to various kinds of providers such as nursing homes, rehab clinics, physician group practices, medical equipment suppliers, nursing homes, diagnostic centers, MRI and imaging clinics, medical laboratories, etc. since medical factoring is a specific specialized area, it needs a deep understanding of the healthcare industry.
GROW YOUR SERVICES
You should consider expanding your services. When it comes to negotiating with vendors and attracting patients, strength in numbers is always a good point. You can have affiliations with providers that give complimentary services, like practices that focus and work with patients with diabetes should incorporate eye and kidney treatment, weight loss, and nutrition.
Institutes that specialize in pains related to lower backs could offer services from pain management, physical therapy to radiology, rheumatology, neurology, and orthopedics.
Marketing is another important strategy to enhance your healthcare practice. Today, patients are sharp consumers who research on the internet for medical care. Skipping a marketing plan can be a mistake. Your healthcare practice requires an informative and welcoming email program, website and a strong social media presence.
Your digital platform and prints should have a voice that supports trust and confidence and a compatible look. You must also pay attention to online complaints and reviews. An online review of your healthcare practice becomes a vital factor for a patient to trust you and choose you. You must give patients a positive experience to gain great reviews.
You need to focus on many reviews that have a common complaint and solve the issue.
These 5 medical factoring strategies deal with cash flow problems and grow your healthcare business and practice. It is a flexible financial option. Medical receivable factoring allows you to plan for growth and advancement. With predictable and certain revenues and also have improved cash flow, it allows you to plan for the growth of the business.