Healthcare
Medical entites getting paid directly by a 3rd-party insurance company. This includes medical practices, doctor groups, medical equipment providers, medical imaging, urgent care, labs, patient transport companies, home healthcare providers, autism care, drug recovery, therapists and pharmacies specializing in compounding/infusion.
The information we need to start with is right under your nose. Most factors ask for the last 2 years’ P&L and balance sheet. If you’re younger than 2 years, then fine – whatever you have. The P&L gives them an idea of how much volume you’ll be factoring and how to price the deal. Your balance sheet shows what other outstanding debt there is with potential “all-assets” liens affecting the AR’s ownership – which is easily fixable with “intercreditor” agreements. How we present your AR is key. I find the best way is with a collection history report. I have an Excel template and can fill it out with you.
We’ll want to show the factor all of your billing activity for the past 12 months (all claims, paid and unpaid) broken down by procedure, date of service, date of bill, amount billed, carrier, and any payments received. We can probably glean this from your existing system’s “AR roll forward report”. Trust me, it’s a simple process and doesn’t have to be perfect. And if you happen to have a 3rd party billing company already running your claims – perfect – they create these reports all the time and can probably put it together even better than me!