Compound Profit Blog

The economic downturn has affected everyone including the medical practice. High unemployment rates have increased the number of patients not covered by insurance.  This in turn means there are less premium revenues available from Private Payers. Stock market declines have resulted in insurance companies making less on investments. To preserve profits, Insurance companies are “cost-shifting” to physicians by placing downward pressure on reimbursements. From 2008 to 2009 the average payment for office visits for new patients, established patients, and consults decreased by almost 8 percent.

Healthcare reforms are projected to lower the overall cost of healthcare in part by decreasing physician compensation. A recent PricewaterhouseCoopers (PWC) report estimates that $1.2 trillion of the total $2.2 trillion spent on healthcare in the United States is wasted due to Ineffective IT, non-optimized claims processing and defensive medicine. The President’s recommendation to adjust payments so that health care providers are encouraged to increase productivity in how they deliver health care is a call to focus on efficiencies.

For the traditional medical practice these external forces necessitate the need to examine the five major practice components of IT expenses, work flow, labor intensive administrative operations, revenue management and compliance.

1. IT services need be examined for cost of deployment, technical staffing and training and software compliance across multiple office locations.

2. Complex and rigid processes and work flows are non-intuitive and require highly specialized training for staff.  Over time this can result in a practice not agile enough to meet the ever changing needs of todays and tomorrows practice.

3. Labor Intensive daily tasks like claim management, patient follow-ups and insurance authorizations require intense office staff focus, tying up valuable resources that could be utilized on other value added activities.

4. Optimizing revenue may be difficult for a traditional practices due to a lack of  time and tools required to identify and act on areas of the business and process management, as they relate revenue.

5. Compliance to HIPAA, Insurance Providers, and coding standards have regularly updated regulations that must be continually addressed.

Solutions lie in breaking down the silos built up within the practice for optimized work flow, outsourcing IT and software, implementing proven fortune 500 revenue and cost management techniques to increase practice profitability, perform internal audits for compliance assurance and free up physicians and staff to have more time for patients, family and self. For more information, check out our medical factoring and billing solutions.

Dan Conrad

Compound Profit Medical of Virginia

4870 Sadler Rd.  Suite 300

Glen Allen, VA 23060

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We all know that a medical drama is a TV program that centers its activity on a hospital or another medical environment. As we watch the episodes from a new series, we start to grow attached to some of the characters and we start hating the others. Most of the time, there’s a lot of drama in there, and for a good reason: the doctors, the nurses and the auxiliary personnel are fighting to save as many patient lives as possible.

While most medical dramas last for about 60 minutes, some of the medically-related business owners live in a drama that can last for many months or even years: poor cash flow. It’s not a secret that the insurance companies only pay them after many weeks of waiting, and sometimes the owners have to wait for their invoices to be paid for over 3 months!

Fortunately, the alternative financing companies have invented medical factoring, which is the process of selling your accounts receivable to a factoring company, a business entity that buys your invoices and gives you a big advance payment of up to 90% right away. The factor then waits until your invoices are paid, and then it gives you the rest of the money, keeping a small percentage for its services.

I know, you can’t find too much romance in there, but the words can barely describe the happy look on a business owner’s face when he or she realizes that the cash flow problems are solved for good. Think about it: as your business grows, your receivables grow; sadly, the lack of capital has put many owners out of business or has forced them to give away equity. This is definitely not the case with medical factoring: as your medically-related business grows, you get instant access to larger and larger funds.

And this, my friend, is the end of a modern medical drama. The medical business owner can now pay his / her suppliers on time and the employees are happy knowing that they will always get their salaries without any delay. If you know a business that might need medical factoring services or any other business that could benefit from selling its accounts receivable, getting the cash for them in less than 48 hours, you have come to the right place, so contact us to get a 100% free consultation. To your success!

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Medical Factoring – is it any good?

Despite the earlier predictions, the businesses offering medical services are growing faster than ever. And why wouldn’t they grow if the demand for medical services has increased a lot during the last few years? This is definitely a good sign for any business owner, but a growing company brings in additional chores.

In addition to this, many healthcare-related businesses can’t reach their true potential and actually lose customers because they can’t wait for 30, 60, 90 or even 120 days, until Medicare / Medicaid or the other insurance agencies pay their invoices. If this problem has troubled you, there’s hope: using medical factoring, your invoices are paid in only one or two days, allowing your company to grow to its real potential.

Through medical factoring, the business owner can pay its rent on time, purchase the needed equipment without compromising quality and keep the balance sheet clean. However, the biggest advantage offered by medical factoring is peace of mind; you will now be able to concentrate on finding ways to run your business in a proper manner, instead of thinking at the money you’re losing each day because you don’t have quick access to Your finances.

You don’t have to be a rocket scientist to use medical factoring: you simply send out the invoices as usual, and then fax a copy of them to a medical factoring company such as Compound Profit, receiving an advance of up to 90% of your collectibles; the remainder will be paid when the medical factoring company gets the money from Medicare / Medicaid / etc. What’s in it for the medical factoring company, you might ask? They keep a small service fee, usually in the range of 1...3% from the value of your collectibles.

Medical factoring doesn’t have anything in common with a traditional line of credit; it grows with your business, so more and more funds are available right away, as you send out more and more invoices. If you have got a medically-related company, you can apply for medical factoring no matter if you’ve been in business for many years or you’re just starting out. And the good news doesn’t stop here: the financial strength of your company isn’t taken into account, because the medical factoring companies will only deal with Medicare / Medicaid / HMOs / other insurance agencies.

We at Compound Profit offer personalized, free consultations, allowing you to discover all the ways in which your medical business can benefit from medical factoring. We have a national presence, so don’t hesitate to contact us.

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