Med-Care Solutions Offers Medical Accounts Receivable Financing Options To Cash Strapped Practices

LAS VEGAS - March 27, 2014 - PRLog -- For many physicians, medical treatment providers, surgery centers and private practices the concept of “medical account receivable financing” is a foreign one, or has not been entertained as a method of keeping the cash flow of the practice positive.  One of the most common downfalls of facilities associated with the medical profession is the need to cover ongoing expenses like payroll, purchase of equipment and supplies, rent and other costs while somehow juggling the slow timeframes that insurance companies employ that ultimately pays for the treatments that have already been provided.  Because there is a wide gap between the times that vendors want the payments that provide necessary elements that keep the doors open and the times that collections are finalized on treatments, many medical practices find themselves stretched thin on a monthly basis to cover the bills due to a lack of available cash on hand.  Couple this with the added pressures of collecting money that is rightly owed to the practice and you have a situation that takes valuable resources away from the core business at hand, providing treatments to those who need it.

The concept of “medical account receivable financing” was born from the needs of treatment providers to collect payments as soon as possible, and to not absorb the associated risks of bad debts or lengthy collection processes.  Quite simply, the ability to collect cash immediately is worth slightly discounting the amount that is recovered by the provider, so as to generate available money to pay bills and provide working capital to the practice.  The process of “medical account receivable financing” involves a financing company purchasing the accounts receivable that are on the books of a practice at a discount, allowing a recovery of money to happen immediately in exchange for no longer having to assume the risks of collection.  As outstanding debt ages, it becomes more difficult and less likely to collect, and “medical account receivable financing” programs bridge the gap, providing a working solution for all parties involved.

When a buyout of medical accounts receivable happens by a company like Med-Care Solutions, the legal rights to the debt are assumed by the financing company in exchange for a discounted payment that goes to the practice immediately.  The provider receives an immediate lump-sum payment in order to transfer ownership of the accounts receivable over to Med-Care Solutions, who then proceed to collect upon the individual debts in the timeframes necessary.

Med-Care Solutions was created by Kamron Abdo CEO as a financing solution for cash-strapped medical facilities who have plenty of accounts receivable and money owed to them, but little cash on hand as the collection process draws out.  Due to the fact that bank loans are difficult to secure as the assets of accounts receivable are considered in various ways by the institution potentially providing the loan, and are usually not enough to secure a favorable term, the need for alternative forms of financing became a necessity if many facilities were to remain open and functioning.  The purchase of debt provides the necessary fast payments that assists the provider, and the financing entity makes money through collecting the debt owed.  The alternatives to traditional loans and financing programs allow medical practices to grow and potentially open up new revenue streams through consideration of new patients they once might have had to refuse because of the risks of non-payment, adding new revenue to practices.  If your practice could benefit from a buyout of accounts receivable, or needs working capital now, you are encouraged to contact Med-Care Solutions through their website or by phone.

http://www.medcaresolutions.us