Medical Receivables FinancingWritten by Afra AmirSanjari
Medical Receivables Financing: The Rx for Ailing Cash FlowThe current adverse financial structure of healthcare industry has placed hospitals, medical groups, private practitioners and other providers in a perilous position. Cumbersome and bureaucratic third party billing systems with long time-to-collection waiting periods have resulted in inconsistent cash flows and limited capital for growth. Nationwide, two-thirds of physicians work in practices that are set up as small business. Payment cuts 18% over four years, together with soaring malpractice premiums and other overhead costs, have threatened to put such practices out of businesses. More than 50% of doctors have deferred plans to purchase much-needed new equipment, and 30% either have laid off staff or are planning layoffs in near future. What is medical receivable financing? Medical receivable funding is a means by which health care providers (Hospitals, Doctors, Outpatient Facillities, Physical Therapists, Dialysis Facillities, MRI Centers, Durable Equipment Suppliers, Rehab Centers, Medical Labs, & Substance Abuse Clinics) receive immediate cash for their billings to third party payors (i.e. commercial insurance companies, HMOs, Blue Cross/Blue Shield, Medicare and Medicaid). What Factoring "Is Not:" • A Loan - Factoring is sale of your medical claims for services already delivered • Offered By Banks - Factoring is not an asset-based loan, nor is it a debt facility similar to those offered by banks. Why not simply pick up phone and call a bank for a loan to get through crisis? Many of you already tried that and have been surprised to find that average practice may not have sufficient credit and assets with which to secure adequate working capital. Additionally, traditional banking loan application and approval process is long and involved. Debt is created for practice to repay, and personal guarantees are required. The practice becomes less desirable for resale or acquisition.
| | 3 Ways to Improve Your Credit Score by 50 Points In Less Than 30 Days.Written by Hartley Pinn
“What can you do to increase that set of three numbers on your credit report that can be so important with your financing? “I came across this question as I was surfing discussion groups other day. Check out my answer: Dear Friend, Here are 3 steps I used to take my credit score from 592 (horrible credit) to 762 (perfect credit) almost overnight. If you’re interested in improving your credit rating quickly, you’ll find this story helpful: In 1995 I made a decision that would ruin my perfect credit history. I quit my salary job to become an insurance salesman. The job paid commission only. Within a few months I lost everything – house, car, credit rating and my self respect. By end of 1996 I was living with my mom, all my credit accounts were severely past due, and I was paying 22% interest on a broke-down green Geo Storm…I was a real loser. Then, in 1997, I became a banker. I didn’t know it at time, but this would turn out to be break I needed to eliminate my credit problems forever. During my seven years as a banker, I came across several legal and highly effective ways to improve my credit rating. As a result, I was able to increase my credit scores by an average of 170 points. Here’s what I did: Step #1: After spending hundreds of dollars on credit repair services that didn’t work, I found out how to get negative accounts removed on my own.
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