Medical Accounts Receivables Financing

The Rx for Ailing Cash Flow


Could you reduce the inconsistent cash flow created by the insurance industry?
Could you
decrease the reimbursement interval from 80 days to 48 hrs?

Could you
increase the overall percentage of claims that you collect on?

HB Capital Strategies says YES YES YES!!!!!

Medical Receivable Funding
dramatically reduces the inconsistent cash flow created by the insurance industry and other third-party payors and provides you with operating capital 48 hours after submitting claims and it puts no debt on your books!

Doctors and Hospitals around the country are finding out that this is the preferred way to stabilize cash flow, get access to unlimited working capital and reduce income that is written off or sent to collections.

The current adverse financial structure of the 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 the near future.


Benefits of Medical Receivables Factoring:

  • A dependable flow of cash to meet overhead, payroll, taxes or growth costs
  • Collection of monies which were otherwise written off or sent to collections, resulting in increased income
  • No creation of new debt which effect credit lines at banks
  • No property or asset liens
  • Flexibility to sell all your receivables or only enough to cover your current needs
  • Reduce administrative costs
  • Provide funds for new equipment, expanding office space, adding additional partners,
    marketing etc.

Accepted Third Party Payors include:

  • Blue Cross/Blue Shield
  • Medicare
  • Medicaid
  • HMO
  • PPO
  • PSO
  • Private Insurance





Medical Factoring: Frequently Asked Questions

Q. If I have been turned down for bank loans can I still qualify for Medical Receivables Funding?†

Yes, Your credit rating is less important than is the credit of your payors Ė insurance companies and the State or Federal Government.

Q. Isnít Medical Receivables Funding similar to a bank loan?

No.† Unlike a bank loan, Medical Receivables Funding provides debt-free immediate access to unlimited working capital.

Q. If Medical Receivables Funding is so effective in producing solid, dependable cash flow, why havenít I heard of it before?

Factoring (advance funding of receivables) is one of the worldís oldest methods of increasing working capital for business, but has only recently been available to Health Care Providers.

Q. Are collateral and personal guarantees needed to secure Medical Receivables Funding?

No.† The funding source only requires a security interest in the providerís receivables.

Q. Isnít it risky to turn my receivables over to a funding source to collect them?

No.† Many providers who may have initially felt this way, now find the funding source successful in improving their bottom lines by increasing overall percentage of claims collected, decreasing the reimbursement interval and reducing administrative costs.

Q. Am I required to draw cash advances every week?

No.† The client can factor as little or as often as he or she needs to, depending on working capital requirements.

Q. Besides smoothing out my cash flow, what other benefits are there to Medical Receivables Funding?†

Access to unlimited working capital improves the credit rating of the provider.† Practice creditors may offer cash discounts for early payment, sometimes up to 25%.† The providerís balance sheet improves making the practice more attractive for buy-out or acquisition.† Capital is available to reliably meet payroll and malpractice premiums.† Funds can be easily drawn to cover practice expansion, adding partners or purchasing/leasing new equipment.

Q. What if my cash flow doesnít improve with the factoring arrangement with the funding source?

The provider can terminate the arrangement at the end of the trial period, usually 1 year, without penalty.† Unless the productivity of the provider in generating receivables falls precipitously, we have found that this is extremely unlikely to occur.

Q. Do I need to generate a certain level of monthly receivables to qualify for Medical Receivables funding?

Different funding sources have their own criteria for whom they will and will not fund, based partly on net monthly receivable levels.† A Certified Cash Flow Consultant is expert at introducing the client to the correct funding source in order to meet his individual needs. 

Call our office today to find out if Medical Receivable Factoring is right for you!!!

FREE, No Obligation Consultation!

Contact the Professionals Today at 800-915-1990 or

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