Stop chasing payments while your medical practice suffers. Why wait 30-120 days for insurance companies to pay when you can access 90% of your claims’ value within 24 hours? Your practice submits the claim, we pay you now, and the waiting becomes our problem instead of yours.
This isn’t debt—it’s simply getting paid sooner for services you’ve already provided. No credit checks. No changing patient relationships. Just immediate cash flow to meet payroll, purchase supplies, and invest in your business growth.
After 15 years helping over 10,000 healthcare providers access more than $500 million in medical receivables, we’ve transformed practices from struggling to thriving. Your staff gets paid, your supplies get ordered, and you get back to what matters most—caring for patients.
Healthcare providers face unique financial challenges: you deliver care today but wait 30-120 days for insurance and government payers to reimburse you. This disconnect creates cash flow problems that traditional financing can’t adequately solve.
While banks scrutinize your credit history, medical factoring focuses on what you’ve already earned. This fundamental difference has led thousands of practices—from small family clinics to specialized imaging centers—to choose medical receivables factoring.
When your expenses demand immediate payment but your revenue depends on third-party payer timelines, medical factoring bridges this gap with solutions tailored specifically for healthcare’s unique reimbursement landscape.
Unlike loans or credit lines, factoring doesn’t create new liabilities on your balance sheet—you’re simply accelerating payment for services already delivered. Medical receivables factoring transforms your waiting period into immediate working capital.
Instead of watching accounts receivable age while bills pile up, you access funds you’ve already earned without taking on debt. This freedom from debt service obligations gives your practice greater financial flexibility during growth phases or challenging periods, without committing to years of fixed payments regardless of future performance.
The average practice spends over 15 hours weekly on insurance follow-ups, payment posting, and collections management — administrative burden that drains resources from your core mission of patient care. Medical factoring eliminates this distraction by transferring the time-consuming process of claim tracking, payer follow-up, and payment reconciliation to your factoring partner.
This operational shift allows your staff to refocus on clinical responsibilities while eliminating the stress of predicting when claims will pay. The resulting stability improves staff retention and satisfaction when administrative personnel aren’t pressured to accelerate collections or manage payment shortfalls, ultimately translating to better patient experiences and clinical outcomes.
Let’s face it—healthcare is constantly changing. Reimbursement models shift, patient volumes fluctuate seasonally, and unexpected challenges arise. Unlike fixed loans with static limits, medical receivables factoring scales naturally with your medical practice and provides the financial stability to navigate these changes without sacrificing independence or creating long-term obligations.
As you generate more claims, your available funding increases proportionally—no need to repeatedly apply for higher credit limits when your business grows. You maintain complete control over which claims to factor and when. Some providers factor only claims from notoriously slow payers, while others factor all claims during specific periods like equipment purchases or expansion.
Medical factoring transforms the traditional revenue cycle by converting your verified insurance claims into same-day working capital. While other healthcare businesses wait weeks or months for payment, your practice gains immediate access to funds—creating financial stability without the constraints of traditional loans or lines of credit. The process is remarkably straightforward, especially compared to conventional financing options that require extensive paperwork and lengthy approval processes.
Here’s how medical receivables factoring works in practice, creating a steady, predictable cash flow pattern regardless of erratic insurance payment timelines. Your medical practice maintains normal billing procedures while gaining immediate access to funds that would otherwise be tied up in accounts receivable:
After providing services and generating insurance claims, you select which receivables to factor and submit them through a secure portal or integration with your practice management system. Many providers start with their oldest claims from the slowest-paying insurers.
The factoring company performs a quick verification process to confirm claim accuracy and collectibility. This typically involves checking that services were properly documented and billed according to payer requirements. For established relationships, this step often takes just hours.
Once verified, you'll receive an advance of 80-90% of the expected net collectible value directly deposited into your practice's bank account. This funding typically arrives within 24 hours of verification – sometimes the same day.
When the insurance company eventually pays the claim (weeks or months later), the factoring company collects the payment, deducts their fee, and forwards you the remaining balance. The beauty of this arrangement is that you've already had use of most of the money during that waiting period.
Different claim types require specialized handling in the factoring process. Government program receivables like Medicare and Medicaid involve specific compliance requirements since they cannot be directly assigned to third parties.
Reputable medical factoring companies address this through specialized “sweep account” structures that remain in your practice’s name while allowing the factoring company to recover advances when payment arrives—maintaining compliance while delivering cash flow benefits.
Private insurance claims involve fewer regulatory complications. Most medical factoring companies can handle your complete payer mix, including commercial insurers, Blue Cross/Blue Shield, Medicare Advantage, and traditional Medicare/Medicaid.
Call us now to get instant payments for your medical receivables. We work with most practices and specializations!
Every healthcare provider faces unique financial challenges. A dental practice has different cash flow patterns than a surgical center. A startup medical practice has different needs than an established multi-location clinic. That’s why one-size-fits-all financing fails the healthcare industry so consistently.
We’ve designed our medical receivables factoring solutions around the specific billing patterns and cash flow needs of different healthcare specialties:
Each specialty program is built around the unique billing patterns, documentation requirements, and cash flow challenges of your specific healthcare field.
Beyond specialty, your practice’s growth stage significantly impacts your cash flow needs:
Medical factoring works best when aligned precisely with your practice’s unique needs. Our tailored implementation process accommodates your existing systems and staff capabilities without disrupting operations. By customizing every aspect of the factoring relationship, we create financing solutions that feel like they were built specifically for your healthcare business:
Practice Management Integration connects directly with major healthcare billing platforms including Epic, Athena, eClinicalWorks, and over 30 other systems. We adapt to your existing workflow rather than forcing you to change your processes.
Customized Submission Options ranging from full electronic integration to simple secure email or portal uploads. Your staff can choose the submission method that fits their comfort level and technical capabilities.
Tailored Reporting Systems provide exactly the financial intelligence your medical practice needs—from basic funding reports to comprehensive analytics on payer performance, aging trends, and denial patterns.
Flexible Verification Protocols designed around your specific specialty and payer mix. Practices with strong billing practices can access streamlined verification processes that accelerate funding timelines.
When healthcare practices need funding, they typically consider bank loans, lines of credit, or medical receivables factoring. While these options might seem similar at first glance, the differences become critical when your medical practice faces the unique financial challenges of healthcare.
Traditional financing wasn’t built for businesses that wait months for third-party payers. The fundamental mismatch between healthcare’s revenue cycle and conventional lending creates friction that factoring eliminates entirely.
Bank loans scrutinize your credit history and past performance, looking backward instead of at what you’ve already earned. Medical factoring does the opposite—qualification depends on your insurance claims’ quality, not your credit score.
This difference leads to approval rates exceeding 90% for healthcare practices with legitimate receivables, compared to traditional bank approval rates below 30%. For new physicians, specialists leaving hospital employment, or practices facing financial challenges, this distinction becomes essential for survival.
Traditional financing drags on for 7-12 weeks from application to funding—assuming everything goes smoothly through documentation gathering, reviews, underwriting, committee approval, and closing preparation.
Medical factoring compresses this timeline dramatically with same-day application review and 24-hour funding upon verification. Your first invoice typically funds within 2-3 days of application, with subsequent factoring happening within hours.
This speed difference isn’t just convenient—it can determine whether you meet payroll or purchase critical supplies when needed.
Traditional loans create liabilities on your balance sheet that affect financial ratios and limit future borrowing capacity. Every dollar borrowed becomes a fixed obligation regardless of performance.
Medical receivables factoring, by contrast, is technically a sale of assets rather than debt creation. This distinction improves your debt-to-equity ratio, enhances borrowing capacity, eliminates monthly loan payments, and removes the need for personal guarantees or covenant restrictions.
A surgical center declined for a $250,000 equipment loan due to existing debt covenants solved their problem by factoring Blue Cross claims—accessing needed capital without technically taking on additional debt while maintaining compliance with their loan agreements.
Traditional loans provide capital but leave the entire collections burden on your practice. You’re still responsible for chasing payments, managing denials, and handling the administrative overhead of the revenue cycle.
Medical factoring transfers this burden to specialists who handle insurance follow-up, payment posting, and reconciliation. This operational advantage creates significant administrative relief beyond the pure financial benefit.
Bank lines of credit establish fixed limits that quickly become constraints during growth phases. When you exceed these limits, you face the entire application process again—often just when you need capital most urgently.
Medical factoring scales naturally with your practice. As you generate more claims, your available funding increases proportionally without reapplication. This growth alignment prevents the common scenario where success creates cash flow constraints due to rigid financing limits.
The thought of implementing any new financial system can trigger concerns about disruption to your already complex healthcare operations. Fortunately, modern medical factoring integration is designed specifically to complement—not complicate—your existing workflows. The best medical receivables factoring programs adapt to your medical practice rather than forcing you to overhaul your processes.
Most healthcare providers are surprised by how quickly medical factoring can be implemented, especially compared to traditional financing options:
Many healthcare practices begin receiving funds within a week of starting the implementation process. After the initial setup, subsequent funding cycles become even more streamlined, often with same-day funding for verified claims.
Your medical practice management system represents a significant investment. Medical factoring implementation respects this by offering multiple integration approaches based on your technical comfort level:
For practices using major healthcare billing platforms like Epic, Athena, or eClinicalWorks, our system integrates directly with your existing software. Your staff continues working in their familiar environment while the factoring process runs seamlessly in the background.
If direct integration isn't practical, our secure provider portal offers a simple upload interface for claim batches. This option requires minimal technical knowledge while maintaining HIPAA compliance and data security.
For proprietary billing systems, we develop custom export routines that allow your existing system to generate factoring-compatible files with minimal staff intervention.
Unlike many financial services that force healthcare providers to adapt to rigid technical requirements, medical receivables factoring implementation starts with understanding your current processes and then building integration pathways that work within your existing technical framework.
The operational impact on your staff is intentionally minimal—most practices find that medical factoring simplifies rather than complicates their workload, with staff adapting to the new workflow within just two weeks. The key to success lies in choosing a healthcare-focused factoring partner who understands medical operations, as generic factoring companies often lack the specialized knowledge needed to properly integrate with medical billing workflows while respecting the unique aspects of medical practice management.
Your billing team continues generating claims exactly as before. The only workflow adjustment is directing verified claims to the factoring system instead of waiting for payment through normal channels. This typically requires less than 30 minutes of training.
As factoring takes over the collections process, your staff experiences a significant reduction in follow-up work. The hours previously spent on payer calls, payment tracking, and reconciliation become available for other priorities.
Rather than piecing together cash flow projections from unpredictable insurance payments, your administrative team receives clear reporting on factoring advances and settled claims. This predictability dramatically simplifies financial management and forecasting.
For many healthcare providers, government programs represent a significant portion of their revenue. Medicare and Medicaid claims often account for 40-70% of total receivables, yet these claims present unique factoring challenges due to specific regulatory requirements. Unlike commercial insurance receivables, government healthcare program claims require specialized handling to ensure full compliance with federal regulations.
Medicare and Medicaid claims are subject to anti-assignment provisions that technically prohibit direct assignment to third parties. This doesn’t mean these receivables can’t be factored—it simply requires a more sophisticated approach than standard commercial factoring.
The key compliance question many providers ask is: “Can Medicare receivables be factored legally?” The answer is yes, but only with properly structured arrangements that respect regulatory requirements while delivering the cash flow benefits you need.
Our proprietary Medicare receivables factoring structure addresses these requirements through specialized banking arrangements that maintain compliance while providing immediate access to funds from pending government claims. This approach has successfully funded over $300 million in Medicare and Medicaid receivables for healthcare providers across all specialties.
Instead of direct assignment, compliant government program factoring utilizes specialized account arrangements that have been carefully developed in consultation with healthcare regulatory experts. These structures ensure your medical practice can access needed capital while maintaining impeccable compliance with CMS regulations.
These dedicated accounts allow government payments to flow through a controlled process that maintains compliance with anti-assignment provisions while ensuring proper allocation of funds. The sweep account remains in your practice's name while facilitating the factoring arrangement.
Specialized lockbox services provide secure processing of government program payments with comprehensive audit trails that satisfy compliance requirements while streamlining the funding process.
EFT payments from Medicare and Medicaid require specific handling to maintain clear ownership traceability while enabling proper factoring arrangements. Our systems are configured specifically for government program electronic payment protocols.
The complex regulatory environment surrounding Medicare and Medicaid need not prevent your practice from accessing the capital locked in these receivables. With properly structured factoring arrangements and specialized expertise, you can convert these slow-paying government claims into immediate working capital while maintaining complete regulatory compliance.
We track payment patterns across government programs, providing valuable insights that help your company optimize billing practices for these critical revenue sources.
Our analytics identify common denial reasons in your government claims, helping you address underlying issues that may be impacting your reimbursement rates.
Expert feedback on your Medicare and Medicaid claim documentation helps reduce denials and accelerate payment on future claims.
The journey to financial stability for your healthcare practice begins with a straightforward process. Most providers are surprised by how quickly they can start converting their outstanding insurance claims into immediate working capital. Getting started with medical receivables factoring takes just three simple steps
The medical factoring application process starts with a simple form that takes less than 5 minutes to complete. Unlike traditional loan applications that require extensive financial documentation, our initial application focuses on basic information about your company:
Once submitted, your application receives same-day review by a healthcare financing specialist. Many providers receive preliminary approval within hours of applying.
After preliminary approval, you’ll work with a dedicated onboarding specialist who guides you through submitting necessary documentation via a secure portal and assists with any questions about specific requirements:
The final step in starting medical factoring involves setting up your account for ongoing operations. From that point forward, your practice gains the ability to convert claims to cash as needed—creating the financial stability necessary for growth and operational excellence.
Most practices complete the entire application process within 2-3 business days. Your first batch of claims can be submitted immediately upon account activation, with funding typically available within 24 hours of that first submission.
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Medical receivables factoring rates typically range from 2% to 4% of the total invoice value for clean, electronically submitted claims from established healthcare providers. Unlike traditional loans with compounding interest, factoring fees are one-time charges that vary based on several factors including your specialty, monthly factoring volume, payer mix, and claim aging. Practices with high volumes of commercial insurance claims from major carriers generally secure rates at the lower end of the spectrum (2-3%), while those with more complicated reimbursement structures or government payers might see rates closer to 3-4%. Most medical factoring companies use a tiered fee structure where older claims cost slightly more to factor.
Medical factoring companies must operate as HIPAA-compliant Business Associates, signing formal Business Associate Agreements (BAAs) that legally obligate them to maintain the same strict patient privacy standards as healthcare providers. Reputable factoring partners implement comprehensive security measures including encrypted data transmission, secure payment portals, restricted access controls, regular privacy training, and detailed audit trails of all PHI access. During the factoring process, only the minimum necessary patient information is shared—typically limited to claim data already submitted to insurance—and patient medical records remain completely protected. Before selecting a medical factoring company, always verify their HIPAA compliance protocols and examine their BAA terms to ensure proper safeguards for your patients’ information.
Commercial insurance claims for established procedures with standardized billing codes are best suited for medical factoring, as they offer predictable reimbursement timelines and clear payment amounts. Ideal claims for factoring include those from major private insurers (Blue Cross, UnitedHealthcare, Aetna, Cigna) with clean submission histories, properly documented services, and accurate coding that typically pay within 30-60 days. Most factoring companies also accept Medicare and Medicaid claims, though sometimes at slightly higher rates. Claims particularly well-suited for factoring include surgical procedures, diagnostic imaging, laboratory tests, and specialized treatments with established CPT codes and fee schedules, while experimental procedures or services with frequent denials are generally less appropriate for factoring arrangements.
When an insurance claim is denied after being factored, the outcome depends on whether you have recourse or non-recourse factoring. With recourse factoring (most common in healthcare), your practice remains ultimately responsible for repaying the advanced funds if a claim is denied for reasons related to coding errors, documentation issues, or eligibility problems. Most factoring agreements include a verification period (typically 90-120 days) during which denied claims can be resubmitted and corrected. If permanent denial occurs, the factoring company will either deduct the amount from future advances or require repayment according to your factoring agreement terms. With more expensive non-recourse factoring, certain denial types may be covered by the factoring company, though exclusions still apply for documentation or coding errors.
Medical factoring fundamentally differs from loans or lines of credit because it’s not debt but rather a sale of assets (your insurance receivables), meaning it won’t appear as a liability on your balance sheet or impact your debt-to-income ratio. Unlike loans that require good credit, established business history, and fixed monthly payments regardless of revenue, factoring approval depends primarily on your payers’ reliability rather than your practice’s credit score or financial history. Medical factoring scales automatically with your practice volume—advancing funds only as you generate claims—whereas loans provide a fixed amount regardless of your current cashflow needs. Additionally, factoring typically requires no personal guarantees, collateral beyond the receivables themselves, or lengthy application processes, making it accessible even for new practices or those with limited credit history.
Medical factoring typically has minimal impact on patient relationships because the process remains invisible to patients in most implementations. When factoring only insurance claims, patients continue receiving the same statements and making payments directly to your practice through your existing billing system. The factoring company works behind the scenes, advancing funds against insurance claims while your practice maintains complete control over patient communications and billing experiences. In arrangements that include patient responsibility portions, the factoring company may send statements with your practice name and branding, functioning as an extension of your billing office. Most healthcare practices find that factoring actually improves the patient experience by providing additional capital for better facilities, shorter wait times, and enhanced service offerings without disrupting established patient-provider relationships.
The key difference between recourse and non-recourse medical factoring is who bears the financial risk when insurance claims go unpaid. With recourse factoring (most common in healthcare), your practice ultimately remains responsible for repaying advances on claims that insurers deny or don’t pay, typically after 90-120 days. This option provides the lowest factoring rates, usually 2-3% of claim value. Non-recourse factoring transfers certain payment risks to the factoring company, offering protection if claims go unpaid due to insurer insolvency or specific denial reasons outlined in your agreement. However, this protection comes at premium rates (typically 3-5%) and still excludes most common denial reasons like coding errors, medical necessity issues, or documentation problems. Most medical practices choose recourse factoring for its cost-effectiveness when working with reliable insurance payers that rarely default on valid claims.
Medical factoring can indirectly help with credentialing and insurance contract negotiations by providing the working capital needed to sustain operations during these time-intensive processes. The average provider credentialing process takes 90-120 days, during which practices cannot bill the insurer for services provided. Many medical factoring companies offer complementary services including credentialing support, contract review, and reimbursement analysis that help identify optimal payer relationships. By maintaining stable cash flow during credentialing periods, factoring enables practices to negotiate from a position of financial strength rather than necessity. Some specialized medical factoring partners even provide analytics that identify which payers offer the most favorable terms and fastest reimbursement timelines, giving practices valuable leverage when negotiating new contracts or renewing existing ones.
Yes, you can absolutely use medical accounts receivable factoring while maintaining existing bank loans or lines of credit, as factoring is technically an asset sale rather than additional debt. Unlike loans that appear as liabilities on your balance sheet, factoring involves selling your insurance receivables for immediate cash, which many lenders view favorably as it improves your practice’s liquidity position without increasing debt ratios. Most bank covenants and loan agreements specifically permit factoring arrangements, though you should review your existing loan documents to confirm there are no restrictions on selling receivables.
Factoring effectively complements traditional financing by addressing different cash flow needs – lines of credit provide long-term capital for major investments like equipment or facility expansion, while factoring converts your earned but unpaid insurance claims into immediate working capital for day-to-day operations. Healthcare practices commonly use this hybrid approach: maintaining a line of credit for strategic investments while factoring specific slow-paying insurance claims to cover regular expenses like payroll, supplies, and rent.
Take the first step toward financial stability by requesting your consultation today. Schedule a no-obligation consultation with a healthcare factoring specialist who understands the unique challenges of your specialty.
During this 30-minute session, you’ll receive:
Even if you’re just exploring options, this consultation provides valuable insights into optimizing your practice’s cash flow. There’s no pressure to proceed—just straightforward information about how medical receivables factoring could benefit your specific situation.
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