What is Medical Accounts Receivable (MAR) Funding?
How Does It Work?
Benefits to Your Practice
Why Choose Principle Commercial?
What Types of Accounts Can I Fund?
How Do I Get Started?
What is Medical Accounts Receivable Funding?
Medical accounts receivable funding (MAR) is a form of commercial finance whereby a practice sells its accounts receivable (in the form of insurance claim) at a discount.
Your practice is then no longer dependent on the conversion of accounts receivable into cash from the actual reimbursement from the insurance company, which often takes 30 to 180 days.
Medical practices benefit from the acceleration of cash flow.
MAR funding is considered
off balance sheet financing in that it is not a form of debt or equity.
This fact makes MAR funding more easily attainable than traditional bank or equity financing.
There are usually three parties involved when using MAR funding:
- Seller of the product or service who originates the claim.
- Debtor and recipient of the claim for services rendered who promises to pay the balance within the agreed reimbursement terms.
- Assignee (the funding company)
How Does It Work?
First, immediate cash for as much as 80% of the claim's total value is given to your practice from the funding.
Then, upon full reimbursement of the claims(s) by the insurance company, you will receive the balance of the accounts, less a small discount fee (when managed properly, this discount fee will typically be between 2 - 4%).
 |
 |
 |
|
 |
| Your A/R claims totaling a Net Collectable Amount of $50,000+ are submitted to one of our investors for funding. |
|
80% of the Net Collectable Amount is transferred to your practice within 24-48 hours *, giving you the working capital you need to succeed. |
|
As your insurance claims are paid, the remaining balance of the receivable is sent to your practice (less a small Discount Fee)** |
* The Net Collectable Amount (NCA) is the amount that will be paid by the insurance carrier for a given
procedure. The percentage of the NCA paid is determined on a case-by-case basis.
** The Discount Fee is calculated based on the length of time that the receivable is outstanding. When managed properly, the discount fee will typically be between 2 - 4%
Benefits to Your Company
- Boost your liquidity – Get an immediate cash infusion for your accounts receivable within 24 - 48 hours to pay expenses, purchase equipment, or fund the construction of a new facility.
- Debt-Free Funds – Gain quick working capital to grow your practice without incurring any additional debt.
- ClaimGuard™ – We make sure you get the money you are owed for each and every one of your insurance claims.
- Asset Protection – Shield your practice’s largest asset from lawsuits.
- Increase your sales through credit extensions.
- Relief from responsibility for collection of non-paying and slow-paying clients.
- Focus on the success of your practice instead of worrying about your cash flow.
Why Choose Principle Commercial? back to top
- No runarounds or telephone tag
- Our MAR Funding Team specialize in healthcare financing, so they know your industry
- No minimum monthly requirements, no sign-up fees, no surprises
- The money you need, when you need it
- More time for you to spend dealing with patients and growing your practice
Please Contact:
Matt D. Hickey
VP, Production of Commercial Lending
Direct: 518-289-3008
|
What Types of Accounts Can I Finance?
PCC currently funds medical accounts receivable which are generated by healthcare service companies also known as "healthcare providers" which would include the following types of clients:
- Group practice physicians, nursing homes, and hospitals
- Home and mental healthcare providers
- Rehabilitation and physical therapy companies
- Medical equipments providers
- MRI and radiology centers
- Medical laboratories
- And many other unique medical business types.
We currently do not offer funding to dentists, veterinarians or chiropractors.
If you're not sure if your practice qualifies, please
Contact Us and a MAR Funding Consultant will be glad to discuss your options.
Types of Accounts Receivable Which We Accept
The "mainstream" types of accounts receivable that we will consider for funding are accounts receivable which are generated by a healthcare service company and are due from third party payors which include the following categories:
Medicare, Medicaid, Commercial Insurance, Private Insurance, HMO/PPO, and Managed Care.
The average time to collections for most of the Accounts Receivable that we fund range from 90 - 180 days (we will also consider receivables which collect in longer time periods).
We will also consider funding accounts receivable whereby the payors are actually healthcare facilities themselves, such as a nursing home or a hospital, whereby the healthcare provider client is contracting to provide its services to the healthcare facility.
Other types of accounts receivable that we will consider funding include the following: personal injury, no-fault, and worker's compensation.
Types of Accounts Receivable Which Are Not Acceptable
We presently do not fund accounts receivable that are owed by patients directly (also known as self-pay).
In addition, we do not fund certain types of longer turning worker's compensation, personal injury, or no-fault accounts receivable.
- Too new to obtain bank financing (under 3 years old)
- Needs accounts receivable financing for payroll
- Needs expansion and/or working capital
- Needs acquisition financing
As newly rising stars in the healthcare industry, Principle Commercial’s underwriters can effectively evaluate the worth of a healthcare claim with a knowledge that is typically unmatched by commercial banks or other funding companies.
Our professional staff is thoroughly familiar with the laws and limits of Medicare, Medicaid, insurance companies, and other third party payors.
We know how to leverage healthcare accounts receivable in order to provide a reliable, consistent cash flow for our clients.
Great client relationships are a number one priority with PCC.
Our goal is to never have a customer lose a client over their Accounts Receivable.
Call us today and within 30 days Principle Commercial’s funding programs could be working for you!
How Do I Get Started?
After filling out our
MAR Funding Application, continue on to read about the
next steps of the MAR Funding process.
Do you have questions about medical accounts receivable funding?
Please
Contact Us and a Commercial Loan Consultant will be in touch with you shortly.
Not sure what all these financing terms mean? Check out our extensive
glossary for more information.