Some medical providers in Texas may qualify for medical accounts receivable factoring even though the profile of the carriers paying the claims do not fit the typical factoring formula.
Providers in Texas, have the rare advantage of being able to factor its workers compensation medical claims. Under normal circumstances, medical factoring will not include receivables payable by state workers compensation payors. The length of time it takes to pay these claims usually well exceeds the eligibility requirements for medical factoring, and the amount paid will not be a confirmed amount. The few medical factors that exist in the industry will not be able to purchase such claims as they pay way too long and will generate chargebacks that can be detrimental to the provider factoring the claims. Additionally the factor will be guessing at to the value of these medical bills a very high risk approach to this already complicated industry.
Texas however offers a solution to this problem. The state has a very specific payment amount for each code billed and it is published in the state records for the factor to use. Also the payments are made to the provider in a very similar schedule as the state Medicaid program, which is regular and consistent. So the chiropractor, orthopedist, pain management center, imaging center or physical rehabilitation centers (all high workers compensation providers) can now look to medical accounts receivable financing as a viable solution to growth or to solve cash flow challenges.
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