Medical Billing Factoring Companies

Healthcare factoring companies are a specialty factoring option for dealing with the world of medical billing.  They are familiar with payment terms of insurance companies and third party payers offer.  An extensive knowledge of a client’s invoicing history is necessary for a medical billing factor.  They will examine all available history for the customers a client wishes to factor.  Medical factoring companies work with a large range of clients within the healthcare space from ambulance services to doctor’s offices.     

Requirements for healthcare factoring vary greatly from a standard factoring and rates and terms can differ as well.  Typically a medical factoring company will have a minimum monthly requirement for factoring.  Usually between $50,000 and $100,000 a month in revenue.  Advance rates vary as they’re dependent on percentage payment rates on an invoice.  Third party carriers like Medicare, Medicaid, and various HMOs and PPOs may pay 50% of the initial invoice value.  A healthcare factor will typically need to see a payment history between a client and their customer to calculate the advance rate, usually a minimum of 3-4 months of history.  

The process for a client to start with a  healthcare factoring company is pretty standard aside from the additional information mentioned above.  As mentioned above a medical factoring company will analyze payment history from customers to determine their advance rate which can typically take 2-3 days.  A client can expect to receive their advances on invoices in 48 hours or less once initial approval and verification has been completed.