TERMS AND CONDITIONS
The costing varies from company to company, depending on which plan you select. The cost and fees for factoring your medical accounts receivables differ, depending on the amount of the factored claims or invoices and the time duration from factoring till the date when the invoice is paid.
Every factoring company has different terms and conditions. You must choose a medical factoring option that suits the requirements and cost of your business.
The payouts are generally quick and easy. You would receive your funds and money between 24 hours to 48 hours after the first approval. The initial approval can take up to seven days. You receive your funds after this process and once your invoices are presented to your factoring partners.
In medical factoring, you get to select the number of claims and invoices you want to factor. The invoices can be delivered either separately or in a batch. You have the authority to select which invoices to submit and which to withhold.
If you submit your invoices in a batch, you have the advantage of getting the factoring done at a lower price. Medical factoring is flexible and adjusting, this means that it rises and shrinks with your business.
MEDICAL FACTORING V/S HEALTHCARE FACTORING
The difference between healthcare factoring and medical receivables factoring should be understood. There are majorly two kinds of factoring which is involved with the health care industry, and those are health care factoring and medical factoring.
It’s very important to understand as to what makes each of these factors unique and distinctive because a medical company can profit from both types of invoice factoring.
MEDICARE AND MEDICAID
Medicare and Medicaid claims can be factored as well because both Medicare and Medicaid payments are not always on point as a conventional healthcare payment. A sweep account or control account is a special account that must be used for processing them by the factor.
The processes used by the factor to deal with Medicaid and Medicare claims differ from company to company.
INDUSTRY SPECIFIC AND AUDIT
The company you factor with will be sector-specific. After completing all your research and discussing with factoring companies that have a great experience with medical factoring, only then should you select your factoring partner.
Many of these factoring companies will have officials who specialize in one or more fields and areas of the medical industry such as labs, diagnostic centers, hospitals, home care, etc. they will have the proper understanding in the requirements and issues of the specific medical areas.
An audit will be needed. A billing audit (compliance review and/or third-party payer survey) might be performed by the factoring company before you sign any kind of contract. This is for your safety.
The factoring company wants to help you secure your present cash flow by making sure that the government payers and medical insurance companies are accurate and billed properly. These are some important tips for medical factoring that you must understand before opting it.