Medical Receivables Financing

The Rx for Ailing Cash Flow

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.

What Factoring “Is Not:”

o A Loan – Factoring is the sale of your medical claims for services already delivered

o Offered By Banks – Factoring is not an asset-based loan, nor is it a debt facility similar to those offered by banks.

Why not simply pick up the phone and call a bank for a loan to get through the crisis? Many of you already tried that and have been surprised to find that the average practice may not have sufficient credit and assets with which to secure adequate working capital. Additionally, the traditional banking loan application and approval process is long and involved. Debt is created for the practice to repay, and personal guarantees are required. The practice becomes less desirable for resale or acquisition.

Unlike bank lines that can tie up all of your assets, factoring involves only your third party medical claims

o No collateral other than accounts receivables

o No financial guarantees

o Unlimited amount of dollars

Factoring provides working capital without adding debt to your balance sheet. There is no predetermined maximum limit. This working capital arrangement is not limited in amount as many bank products are nor is it subject to banking “regulations.”

Surveys of physicians have identified the following immediate needs:

The creation of solid dependable cash flow

Decrease in the reimbursement interval between the time service is provided and payment is received

Increase in the overall percentage of claims collected

Reduction in administrative costs

Ready availability of cash for new equipment, expansion of office space, the addition of new partners, and practice marketing

This “wish list” would be complete if access to this working capital could be created debt-free. The physician practice would then have the financial freedom to focus on business growth and patient satisfaction, instead of focusing on how to meet the next payroll or malpractice premium payment. Is such a solution possible? Fortunately, the answer is YES!

The Best Time To Starty Your Own Business

I started reading business opportunity magazines approximately 40 years ago. And for the last 40 years, the January issues have proclaimed:

NOW IS THE BEST TIME TO START YOUR OWN BUSINESS!

The reasons supporting this bold blast have varied over these 40 years as you can well imagine. This year the reasons float around the fact we are fat, i.e., great economy, low unemployment and an income level allowing for disposable dollars.

Let’s say that is true. Does that mean this is the best time to start your own business? Well, given this is such a monumentous decision the real answer is: It depends on your state of mind at this point in time.

But what have you got to lose, right? You don’t have to quit your job. You don’t have to take a second mortgage to finance the venture and you don’t have to sell your soul.
Why not go for it?

Couple this risk free environment with the Internet and there is almost no reason why you shouldn’t take the plunge.
As you may already know, the Internet has so much free information on starting a business that it would seem like the antithesis to not start your own business.

The Internet’s information pool hands you the tools to start your own business offline, online or both. The Small Business Administration’s site alone (http://www.sba.gov)
could launch any number of different types of businesses.

Put almost any type of entry into a search engine, and you will find some site dealing with the search request. In fact, if you had no other tool, search engines could dish up enough information to meet the research requirements for a Ph.D. on starting your own business.

Fortunately you don’t have to rely on search engines alone.
The major book sellers are still selling books by the volumes (pardon the pun) everyday. Seems information is the number one best seller today as 40 years ago.

Your local library has both books and computers. Chances are excellent these computers are also hooked up to the Net.
Magazines and newspapers are also on the shelves for patrons.

Don’t forget the mall. It has bookstores and the bookstores have books, magazines, newspapers, CDs, etc.

Information saturation is the fuel propelling start ups.
Given the economic safety net, or at least the perceived safety, people are stepping out to start up. Even if they fail, they accelerated commerce for the time they were in business. It is a win-win scenario.

You can accuse me of becoming brainwashed over 40 years of reading now is the best time to start your own business, but, think about it, when is the best time? It will always be now since yesterday is tomorrow’s today.

Your attitude determines your altitude. If you believe now is the best time to start your own business, then go for it.
Take the first step and don’t look back.

Treat Money Well To Attract More

Your ability to attract money has a lot to do with how you behave toward it.

The Law of Attraction works to send you more of what you think, feel and do. So the way you deal with money has a direct relation to how easily and abundantly it comes to you.

Imagine that money is a guest in your home and ask yourself: Would I treat a guest the way I treat money? Here are three ways we can show hospitality to guests – and money.

First, welcome your guests. Truly appreciate, from your heart, each visit and every visitor. A friend of mine welcomes money to his home by displaying each check he receives on a coffee table in his living room. He spends a few days appreciating his “guest” before depositing it into his bank account.

Since I receive most of my income electronically, I keep a spreadsheet of every transaction that comes my way. I love watching the total grow and I appreciate each person through whom the money came to me.

Second, remember that guests like to go places and do things and buy stuff. Money loves to go to restaurants, amusements and specialty shops. But money doesn’t discriminate between pleasurable and “have to” activities. It also enjoys visits to the power corporation, the phone company and the firm that holds your mortgage. Money simply loves to be in circulation. It looks for people who understand that the more money you circulate, the more money you attract to circulate.

Third, a guest who has been treated well will tell others and soon you’ll have MORE guests. Money that is enjoyed, spent, circulated or given will attract MORE money. Actually, it’s your attitude of enjoyment, pleasure, excitement or delight with money that attracts MORE money to you.
There are so many ways that you can make money feel like a treasured guest. Start by appreciating ALL the money that comes to you. If you find a penny or a dime, pick it up and celebrate how easy it is for money to find you! Spend time valuing every refund or coupon that you receive. Do something special with your paycheck or other forms of income. Record in a journal or notebook all the unusual ways you attract money. Notice how easily it comes to you when you are happy, joyous and open-handed about money.
Perhaps you’re thinking, “I could treat money well if I had a lot of money.” The truth is, you have to treat money well in order to have an abundance of it.