When patients are treated at the health facility that you operate, you submit their charges to their insurance provider. However, it can take weeks before you see the money in your bank account. Partnering with an organization that offers medical factoring allows you to pay for items, such as equipment and payroll, when you require them. This is how you can use your invoices to fund your hospital.

Finding the Right Partner for Your Facility

Once you determine that your hospital would benefit from this, research which companies offer this service. Look into what their fees are and what percentage you would receive at first. Medical factoring organizations will evaluate the bills that you issue to your clients and then pay you for the majority of what is owed. They will then act on your behalf as they work with your patients and their insurance providers to settle what is due to you. They will send the balance to the invoice after it is paid minus their fee. When you decide which business partners are the best for you, reach out to them to get more information.

Meet With the Accounts Receivable Company

Once you get started, you will receive payments from the factoring company within days. However, finalizing the partnership can take a few weeks. Representatives from the organization that you want to work with will come into your hospital to see how you manage your facility, what your financial records look like, and what your process is to collect from your patients. They will take the results of their audit back with them to deliberate if this is something they want to continue with. They will contact you with their final answer and what the next steps will be to finalize the deal.

Submit Invoices and Receive Payment

Now that you are approved by the medical factoring company, you will begin sending your patients’ invoices to them. They may want to choose certain types of bills or may request them all. They will then send a portion of their value to you immediately. Their next step will be to contact your clients and negotiate the terms of payment. One advantage that will benefit the individuals that you treat is that they may be able to stretch out their debt over months so it will be easier for their budget to handle. You will receive the rest of the charges from the organization once they take their fees from it.