The Financing Solution to Physician Cash Flow Problems
As long as people have been getting sick, doctors have been around to treat them. The physicians of today may practice a little differently than those of old, but the heart of the profession remains the same: make people feel better. The way we practice healthcare in the US is constantly changing because of new technology, but the need for the human touch in medicine will never go away completely.
Despite the importance of this profession, physicians in private practices face many cash flow issues. Recently, there has been a shift towards physicians opting for salaried positions in hospitals rather than establishing private practices for several reasons. To start, the recession increased overhead costs for private practices. Also, working for a hospital offers a steady paycheck without the additional costs. Doctors who have stuck with their practices face a constant cash flow battle while they wait for payment from private insurers.The medical services have been rendered, but actual payment does not arrive for weeks or even months. The accounts receivable may look good on the balance sheet, but physicians cannot access them to pay employees or buy new equipment.
Receivables Factoring for Physicians
Factoring medical receivables is one way for physicians to regulate their working capital and make sure expenses are covered. With physician factoring, a private practice sells their unpaid invoices to a factoring company. Then, the medical factoring company advances a portion of the funds upfront and then takes over the collections process. However, factoring medical receivables, especially private practice physicians, can be tricky and not all factoring companies are made equal. PRN Funding has partnerships with the top private practice factoring companies across the US. We can get you connected with one of our account managers and on your way to financial freedom.