Healthcare providers are in a fairly unique position in the business world. In most other professions, when a service is rendered, the provider is immediately paid and can then use that fee for whatever they wish. However, when you’re in the business of providing healthcare, you most likely have already gotten used to being paid your fee in separate increments; first, you get whatever portion is due directly from the patient, then their insurance provider. And most insurance providers have very little reason to be prompt with their payments.
When a bank is forced to wait for their payment past the due date, they charge interest. Yet, healthcare providers are forced by industry standards into shouldering the financial burden of the service they provide until all parties involved have paid them completely, without any sort of additional financial compensation. Not only is this a bit unfair in principle, it blocks healthcare providers from using their money in many ways, all of which are important to a business owner. Without a proper cash flow, healthcare providers often run into problems keeping their employees paid, purchasing up-to-date equipment, investing in their practice, and even with their personal revenue. When you have to balance paying rent and making a living on whether or not you’ll be properly paid, something is wrong.
One way to avoid this problem is to join up with a larger practice, in order to share the burden of waiting on payments and enable a smoother income stream. However, new businesses and businesses looking to expand in the healthcare industry don’t always want to give up on their autonomy as a business by doing so, and almost nobody relishes being forced to work under their competitors.
This is why healthcare providers often turn to healthcare factoring. With healthcare factoring, you can ensure that you are getting your money on a much more reliable schedule, and much faster as well. Some healthcare provider are antsy about such a prospect, seeing our business as akin to a loan, or they worry that they are losing money on this service when they could just wait out the payments from their clients. And while you can wait for your money to come trickling in, our fee is much smaller than the opportunity cost you face by giving up prompt payment. We pay the majority of a claim up front to you so that you are able to pay your immediate expenses on time, but also so that you have available cash to invest in the things that can’t wait to be paid like you are forced to. Expenses like renovations, new equipment, even opening up other locations, all cost money upfront that you may not have when you are forced to wait for insurance providers to pay their share. Since you can pick and choose which of your claims to offer us, you can also have the best of both deals, getting immediate payment where you need it and letting other claims serve as slow but steady revenue streams.
If you want to make the most of your money, don’t compromise. Get it quick with Xynergy Healthcare Capital.
Recent Comments