Frequently Asked Questions

Medical factoring is a financial solution that helps healthcare providers billing  private insurance companies  or Medicaid, and have cash flow problems due to slow payments from insurance carriers. This type of financing is commonly used by healthcare providers and medical professionals of all specialties. There is no other better solution to ease the strain on your business that can occur with the ups and downs of cash flow cycles.

HFS specializes in providing customized cash flow solutions for  healthcare providers billing insurance carriers. Types of medical institutions, practices and services that could benefited from HFS funding program include Regional hospitals, physician practices, physical therapist all specialties,  pharmacies, nursing homes, home healthcare companies, Hospices, rehabs clinics, MRI and imaging centers, laboratories, dialysis centers and others with receivables payable by Medicaid, HMOs, and private insurances.

Financing your medical receivables will generally help your business if the following apply:

1. You work with private insurance companies or Medicaid
2. Your cash flow problems are due to slow-paying claims
3. You need money to pay operational expenses
4. You are in need of working capital because of your growth 

Absolutely, you can be approved for a factoring facility if you only bill  Medicaid.

• Paying your bills on time
• Maintaining a large enough inventory to sufficiently accommodate your patients and referral sources
• Paying your staff regularity
• Staying current with lease payments on your key diagnostic equipment
• Protect your assets against legal actions
• Advertising, selling and marketing your product or services
• Expanding your practice/business to include new products, services or treatments  

As one might expect, the costs can vary depending on a variety of factors including size of the facility request, the number of carriers billed, the amount of claims produced, etc. In general, the cost of factoring can go from 1.5% to 3%.  The best way to see how Medical factoring can work for you is to apply and receive a quote specifically designed for your practice or service.

Very simple, you just have to complete our application and submitted with two supporting documents (Aging report and Billing and collection report). We will issue a term sheet for you in one day and underwrite the transaction and get you funded no later than two weeks after signing the term sheet.

Our medical receivables factoring plans finance your insurance claims in two installments. The first installment is called the advance. It covers about 75% – 85% of the claim and is deposited into your account once the finance company processes your claim.

The remaining 15% – 25% (less the fee) are deposited into your account once the insurer pays the medical claim. This second installment settles the transaction.

We lend primarily against the Accounts Receivable payable by other businesses or business entities (like medical insurance). 80-85% of the invoice’s net value is what we would advance. Eligibility for the invoices must not exceed 120 days. The outstanding balance of the loan must never exceed the advance rate-so if the collateral deteriorated to have a large percentage of ineligible invoices and the calculation of the loan as compare with the eligible receivables exceeds the advance rate (say 80%) then the loan has got to be put back in formula by either providing more eligible receivables or by paying down the balance to out the percentage age back in line.

• A simple, streamline application and approval process.
• A qualifying audit that serves as a) an x-ray of your practice for development a fiscal treatment plan and b) assist you in:
• Increasing your potential to secure a higher cash advance
• Validating your internal controls
• Identifying areas of lost revenue.

We look basically at creditworthiness of your payors, not your credit.

Call or email Carlos Herrera @ 561 346 4641 or underwriting@healthcarefinancespecialist.com

We will be happy to answer additional questions and send you an 

 application. There is no fee to have us review your application and receive a proposal.