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MEDICAL FINANCING TERMS GLOSSARY
Healthcare has its own specialized jargon -- commonly used terms that are unfamiliar to people outside the industry. To put you on the inside track, we have included a glossary of some of the most commonly used terms and abbreviations.
Aged Trial Balance Summary -- Summary in dollars (by Payor Type) of the accounts that are current and overdue by: 30, 60, 90, 120 and 150 days up.
Batch -- An aggregate of accounts receivable purchased within a designated period of time (weekly, bimonthly, and monthly).
Cost Report Filing -- A reconciliation report submitted yearly to Medicare by the Provider.
Due Diligence -- Verification of facts about the provider, performed by the Medical Funding company before granting funding.
Durable Medical Equipment (DME) -- Medical equipment such as wheelchairs, hospital beds or oxygen concentrators.
Explanation of Benefit (EOB) -- A document defining conditions of payment on an insurance claim.
Gross Billing -- What the insurance company is billed; typically more than what is collected.
Health Maintenance Organization (HMO) -- A type of insurance plan.
Long-Term Care Facilities -- Special facilities providing care during extended stays such as nursing homes.
Medicare Offset -- An amount previously paid by Medicare to a Provider that exceeds the amount due. Subsequent Medicare claims will be paid when the account is reconciled.
Net collectable Value or Net Realizable Amount -- In the health care industry there is usually a substantial difference between the amount billed (gross) and the actual amount collected (net). This amount is called NCV or NRA.
Estimated Net Receivable (ENR) -- The amount actually collected from an insurance company by the Provider.
Preferred Provider Organization (PPO) -- A type of insurance plan.
Personal Injury Claims -- Accident claims. These are significant, as they may not be paid promptly by the insurance company if the case is litigated.
Provider -- Any entity that provides a medical service (Such as a doctor, medical clinic, hospital, congregate care facility or other medical facility).
Self Pay -- The amount of the medical bill that the patient must pay out of pocket.
Skilled Nursing Facility -- Specialized outpatient facility usually associated with a hospital.
Third Party Payers -- Entities (other than patients) responsible for payment of a healthcare receivable. Examples are insurance companies, Medicare, Medicaid, CMOs, CHAMPS and Workers Compensation.
Medical Receivable Financing-Medical Factoring
Medical Receivable Financing
Sometimes referred to as Medical Factoring
Finally...There is a Financial Tool Designed to Help You Capitalize on Your Success and Cash Flow...
Are you a Medical Practice collecting between 90k-100k per month in Medicare/Medicaid, HMP/PPO, commercial or private insurance per month?
We have the solution for a predictable cash flow situation that will allow you to grow as much as you need to!
Medical receivables are becoming the priority for any medical practice. Today's medical providers are faced with greater challenges than ever before. An evolving economy, spiraling practice costs, and greater demands on cash flow. No longer can healthcare professionals depend on efficient operations alone to secure a successful practice.
Receiving full reimbursement for services is more difficult than it was last year. And current projections show that the worst is yet to come. Under current insurance system, a myriad of complex Medicare and other insurance regulations and paperwork has engrossed today's medical practice.
This has resulted in perpetual problems in cash flow due to delays in receiving insurance and Medicare payments. This situation has been further magnified with obstacles like increased intervention and restrictive banking policies. Thus it has never been more imperative that bills are collected on time.
An Innovative Approach to improved Cash flow
First Capital Funding Corporation (FCFC), Medical Receivable Financing Division was established for the sole purpose of purchasing accounts receivables from medical providers. FCFC acts as the exclusive Administrator and funding coordinator for several different funds of money to be able to provide cash flow solutions for medical providers.
First Capital Funding Corporation, medical receivable financing (sometimes referred to as Medical Factoring) was devised to provide funds to a much needed field. The medical field. By advancing funds which are due to the physician, FCFC is able to significantly enhance a practice's cash flow. First Capital Funding Corporation buys the receivables of physicians, physician networks, nursing homes, alcohol rehabilitation centers, Psychiatric clinics, ancillary care facilities, and virtually all healthcare providers who submit an application form.
First Capital is a comprehensive company that delivers what you really need:
- CAPITAL
- BILLING EXPERTISE
- CONTROLLED COSTS
Its our business to help your business grow. As a FCFC client we invite you to capitalized on our resources. We'll help you obtain a Medical receivable financing program that will purchase your accounts receivable so you have cash to expand, retire debt or take advantage of trade discounts. FCFC will act as your accounts receivable department and supply you with the initial funding and weekly pre-funding of your receivables.
FAST, EASY without the usual problems and headaches and delays associated with traditional financing. Its the professional financial relationship that results in guaranteed cash flow. In addition to receiving the cash you need, when you need it, you can expect expertise in office efficiency, electronic billing, tracking and collections.
FIRST CAPITAL FUNDING's knowledge of the health care industry is supported by its team of professionals which combines expertise in banking, financial management, administration, governmental agencies and claims management.
FIRST CAPITAL FUNDING is dedicated to solving financial problems and strengthening the stability of health care providers. We provide immediate cash and restore predictable cash flow.
MEETING YOUR SPECIFIC NEEDS
The typical First Capital Funding client is seeking $100,000 to $10,000,000 per month. depending on the needs of your business, we commit ourselves to purchasing to a specified level of invoices, on a monthly basis, over a given period of time.
The advance rate (the percentage of each invoice that we initially fund) depends on your company's unique financial need and your customer's standing and can be adjusted as your needs change.
HOW DOES THE PROCESS WORK?
The process is simple. A due diligence review is performed to determine how much the physician or healthcare organization is actually owed.
Typically a medical company will be advanced up to 85% of the money he/she is eligible to receive even if the physician is owed several millions of dollars. This amount is called the Net Collectable Amount (NCA) or Net Realizable Amount (NRA).
The normal arrangement is for funding of up to 85% (See step 3 in the process above) of that Net Collectable amount to be paid to you within 48 hours.
The remainder 15% (See step 5 of the process above) of the receivable minus a service fee (typically 1-6%) is paid to the physician after the money is collected from the insurance companies. Another words, you get 100% of that Net Collectable Amount or Net Realizable Amount minus reserves and funding fee.
What Kind of Health Care Providers do we serve?
- Sole Practice Physicians
- Group Practice Physicians
- Nursing Homes
- Home Healthcare Companies
- Rehabilitation / Physical Therapy Companies
- Chiropractors
- Small Hospitals
- Laboratories
- Medical Equipment and Supply Companies
- MRI Facilities
Accounts Receivable Acceptable for Funding Are
Accounts receivable generated from Third Party Payors such as:
- Medicare
- Medicaid
- Commercial Insurance
- Private Insurance
- HMO (Health Maintenance Organization)
- PPO (Preferred Provider Organization)
- Managed Care
DO YOU WANT TO APPLY?
Funds Available Now!!!
The process is simple. Simply download the two (2) page Application form, print it and fill it out at your convenience and Fax it to 305-704-3879 or Toll Free at 888-755-8521. Or fill out our online application. After we received your completed application together with a summary age trial balance you are within 10 days of receiving your first funding.
First Capital Funding's medical receivable financing program is geared to create a partnership with the future of the medical industry and to help providers deal with the many challenges of the financing arena.
Managing receivables is one of the greatest challenges facing the health care industry today. First Capital Funding''s medical receivable financing program goal is to make this challenge less daunting and less expensive for health care providers. We will achieve this goal by combining the highest levels of technology and human resources.
Please Click the Apply Button Below to get started now!
