Medical factoring includes a third-party payer (i.e. Medicaid, Medicare, or private insurance company) within the medical invoicing process. The medical provider works with AMK Funding to assist them in getting a Receivable company within the Medical field that is HIPA Compliant. In turn, an agreement is reached whereby the provider will sell their receivables to the receivable company for upfront cashflow.
The Medical Accounts Receivables Financing Process
- A medical provider submits bills to a third-party payer (i.e. Medicaid/Medicare, HMOs, private insurances, personal injury lien settlements, or worker’s compensation insurances, etc.) for the medical services performed.
- The medical provider sends a copy of the invoices to their invoice factoring firm.
- The factor then purchases the medical provider’s invoices and advances up to 80-90% of the expected net collectible value. (Funds are typically deposited directly into the medical provider’s bank account within 24-72 hours).
- The medical factor uses the remaining 20% (reserve) as a buffer in case some of the provider’s bills do not get paid or if they were billed incorrectly.
- The reserve, less the factoring fee, is released back to the medical provider after payments are received.
Medical receivables factoring is a great way to bridge the cash flow gap that is oftentimes created by slow payments from insurance carriers and other third-party payers.
AMK Funding Affiliates Offers Accounts Receivable Finance Specially Structured for Medical Practices.
The Medical Industry is often excluded from Accounts Receivable financing because Improve your cash flow with Medical A/R financing from Coastal Capitalof the highly specialized billing methods and complexity of medical receivables servicing.
AMK Funding & Affiliates Medical Accounts Receivable Financing Program provides the solution to your cash flow problems.If you are a health care provider and have outstanding/unpaid invoices to Medicare, Medicaid, and/or third-party insurance companies, we can help you improve your cash flow position. Receive cash within 72 hours of submission of claims.
AMK FUNDING & AFFILIATES MEDICAL RECEIVABLES FACTORING PROGRAM
- AMK Funding & Affiliates provides advance payment to a medical service provider based on your outstanding Accounts Receivable from a 3rd party. At the time when you generate an invoice on an account, you simply submit a copy to us.
- We analyze the invoices using historical collections for your practice, and industry standards, to establish the expected collectible value. This is your “Borrowing Base”.
- We will fund up to 80% of your Borrowing Base. Funds are transferred into your bank account within 72 hours. The remaining 20% is set aside as a reserve in case some bills do not pay, need adjustment, or are erroneous.
- We wait for the payment. The payment comes directly to Our Affiliate Group from the 3rd party obligor. When the bill is paid by the 3rd party, our Affiliate release the balance of the invoice minus a factor fee which is typically 1.5% to 3.5% per month.
Qualified Healthcare Receivables
- Medicare
- Medicaid
- Government Agencies
- Commercial Insurances
- Private Insurances
- HMO/PPOs
- Managed Care
- No-Fault/PIP carriers
- Worker’s Compensation carriers
- Letter of Protection (Personal Injury) cases
- Acute Hospitals
- Specialty Hospitals
- DME/HME
- Surgeons
- Imaging Centers
- Nursing Homes
- Medical Labs
- Doctor Groups
- Out Patient Clinics
- Rehab Hospitals
- Physicians
- Surgery Centers
- Home Health Care
- Urgent Care Centers
- Pharmacies
- MRI Centers
- Physical therapy Groups/Clinics
- Medical Transport Companies