Preferred Healthcare Funding: Selling Non-Performing, Self-Pay Accounts vs Factoring
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The document discusses the differences between medical receivables factoring and medical accounts receivable purchasing. It notes that factors do not fund on self-pay accounts or accounts over 180 days, and hospitals must repurchase unpaid accounts. However, medical accounts receivable purchasers buy only self-pay accounts of any age, take on compliance risk, and structure purchases as non-recourse sales for hospitals.
Preferred Healthcare Funding: Selling Non-Performing, Self-Pay Accounts vs Factoring
- 2. Factors are not subject to the FDCPA; accounts they advance against cant be in default or classified as bad debt Factors DO NOT fund on self-pay accounts Factors DO NOT fund on older accounts (180+ days) Accounts that dont collect must be re-purchased by the hospital (significant recourse provisions) Factors hold back a reserve (20+%) www.PHFunding.com 888.478.7111
- 3. As a purchaser, we are subject to the FDCPA and must be compliant with federal (and state) laws and regulations ALL accounts purchased are self-pay ALL accounts purchased are NON-PERFORMING Accounts can be from day 1 up to 3 years from DOS Our sales are structured as NON-RECOURSE www.PHFunding.com 888.478.7111
- 4. Accounts Receivable Which Are Not Acceptable We presently do not fund accounts receivable that are owed by patients directly (also known as self-pay). ..the following types of receivables cannot be considered for medical receivables factoring: Private (self-pay) receivables Receivables past 180 days [We} will use the remaining 20% (reserve) as a buffer in case some of the bills do not get paid or if they are billing errors. www.PHFunding.com 888.478.7111
- 5. All we purchase are non-performing, self-pay accounts Self-pay Self-pay after insurance We purchase at any stage of the revenue cycle (i.e. archive, fresh, early out, etc.) We structure transactions as NON-RECOURSE Acquisitions can be a one-off (archive) and/or ongoing (forward flow) basis www.PHFunding.com 888.478.7111
- 6. A sale immediately transforms non-performing accounts into debt free capital straight to the bottom line Partnering with a reputable buyer shortens the revenue cycle and dramatically increases your self-pay account revenue A buyer, due to being subject to state and federal laws/regulations, has significant operational (compliance & licensing) risk in how patients are treated and their accounts resolved www.PHFunding.com 888.478.7111