Services

Medical Receivables Factoring

Reimbursement delays of medical receivables are expected to increase when ICD-9 code sets are replaced by the new ICD-10 code sets.

This change has been mandated by the Health Insurance Portability Accountability Act (HIPAA).

The change is significant as the number of codes will increase from about 20,000 to more than 155,000.

This creates the possibility for additional errors and delays in processing your billing, directly impacting your cash flow.

The impact of the change has been recognized by the AMA. The AMA has requested that the CMS consider a flexible Medicare advance payment policy.


This would help aid physicians who may face cash flow issues because of delayed reimbursement after the change to ICD-10.

Factors consider a medical receivableas a receivable owed to a medical provider by a patient's third party payor.

These are payments that the healthcare and medical provider receives from Medicaid/Medicare, HMOs, private insurances, personal injury lien settlements, or worker's compensation insurances.

Bureaucratic processes and inefficiencies of the healthcare system is often the major cause for slow payments to healthcare and medical providers. This is in addition to the potential impact from ICD-10

Factoring Advantage may be able to help with this potential cash flow problem by providing cash advances on your outstanding medical receivables.

Medical Invoice Factoring is quite simple - you forward your factoring invoice on a daily or weekly basis to your factor for an immediately issued cash advance.

Your medical practice can focus on what it does best - Take care of your patients.

Instead of your practice, let your factoring company wait for payments submitted by your patients insurance company.

Medical Receivable Factoring - What Are The Steps After a factoring arrangement is established with Factoring Advantage following are the steps of the process: Submit your billing to the 3rd party insurance carrier Provide a copy of the billing to the factoring company. The factoring company advances up to 80% of the expected net collectable value to your practice in the next few days. Once the insurance company pays the bill to the factor, the factor would then pay you the remaining 20% less their fee.