There are only two players in traditional accounts receivables — the service or product provider and the customer. However, in healthcare, there is usually a third-party (i.e., Medicaid/Medicare, HMOs, insurance, personal injury lien settlements, etc.) who pays for the services rendered. Unfortunately, personal injury payments are not immediate and are only expected once the patient and the party at fault reach a settlement. In the meantime, medical providers are left to hope to be compensated for their services in the future. With the growing accounts receivables, providers often turn to medical financing companies.
The Working Capital Advances process
As a medical lien financing company, PROVE gives providers a solution to their capital problems. Transforming accounts receivables to immediate liquidity has been facilitated with our straightforward Working Capital Advances process:
- A provider submits bills to a third-party payer and PROVE for the services performed.
- PROVE advances up to 80% of the receivables’ expected net collectible value.
- We use the remaining proportion (reserve) as a buffer in case some of the provider’s bills do not get paid or if billing was incorrect.
- The reserve, less the fee, is released back to the provider after receivable payments are received by the third-party.
No loans. No interest. Just cash flow.
Have you ever had to turn down a new contract with a healthcare facility because you didn’t have enough working capital to hire additional staff? With our Medical Financing programs, we can help you in situations like these. We will purchase your medical accounts receivables and turn them into positive cash. Our flexible financing options are not loans and there is no interest.
PROVE solves the cash flow problems when your business has the opportunity to grow, but you exceed the financing ability. Selling your accounts receivables to PROVE gives you the cash to meet payroll, take supplier discounts, purchase equipment, or increase staff—all of this without increasing your debt obligations. By factoring accounts receivables, you can focus on delivering quality patient care and not on third-party payments.