Medical Accounts Receivable Management (MARF)
Medical Accounts Receivable (MARF) A Cash Flow Solution for
Healthcare Providers. Accounts Receivable is possibly one of a healthcare services or medical providers single largest
balance sheet assets, after their real estate.
Unfortunately, due to current inefficiencies
and bureaucratic nightmares in our healthcare system a medical provider can wait 15-150 days, or more, to monetize
A provider/facility with third party payers has
the ability to accelerate the power of this otherwise dormant asset into a powerful tool that will meet current cash needs
including practice or service growth and development.
Medical Accounts Receivable Funding is a financing method that has significant
benefits when compared to traditional bank financing.
meet the challenges of rising costs, diminishing reimbursements, increasing demands caused by the "baby boomer"
population and changing technology. Rising costs which can threaten the facility/practice's income and future stability,
can be mitigated. Growing patient/resident demand will require the most up-to-date services and facilities. Access
to additional working capital will overcome all of these challenges.
hinder the provider's ability to conduct business, pay staff, order supplies, pay overhead expensses and grow the business.
Most providers turn to their local banks for working capital loans, but due to recent banking regulations/lack of
ability to lend to small and medium sized business organization make it difficult to obtain these loans.
Medical accounts Receivable Funding is
based on one of the oldest forms of financing in existence today. Factoring dates back to the 1600's in colonial America.
It is not fully understood consequently some business managers/providers think it is a new form of financing or only for enterprises
that are in financial trouble. Others think the cost is prohibitive, but the facts are...none of these assumptions
Medical factoring is determined solely by the provider's ability to generate medical
bills, ther are no limits--you grow, you factor. Most importantly, you the provider now have a clear understanding of
when you will have access to your cash flows and can finally concentrate on treating patients.
A Liquidity Squeeze is far worse than a Profit Squeeze. A key management function
is to make sure that a practice/facilities receivables and working capital position are managed efficiently.
With high liquidity, a provider/facility
can take advantage of price discounts, take early payment discounts, reduce short-term borrowing, benefit from a top commercial
credit/bond rating and take advantage of market opportunities only offered by vendors to their very best customers.
Short Term Debt should be matched
to Short Term Expenses and Long Term Debt should be matched to Long Term Expenses.