Personal Injury Factoring

Personal injury cases often involve legal processes and insurance claims. Healthcare providers may face delays in receiving payments as these cases progress through the legal and settlement phases.

Delayed Payments: Due to the complexity of personal injury cases, providers may have to wait for an extended period before receiving compensation for the medical services they provide to patients involved in such incidents.

Cash Flow Challenges: Providers, especially smaller practices, may experience cash flow challenges when waiting for payments tied to personal injury cases. This can impact their ability to cover operational costs and maintain a steady and efficient healthcare practice.

Personal Injury Factoring Solution: Personal Injury Factoring is a financial solution that allows healthcare providers to access a portion of their outstanding accounts receivable related to personal injury cases before the cases are settled or the insurance claims are finalized.

How it Works: Providers sell their accounts receivable related to personal injury cases to a factoring company, like MedFin, at a discounted rate. In return, they receive an immediate cash advance, providing liquidity to cover expenses and invest in the growth of their practice.

Advantages for Provider:

• Cash Flow Stability: Personal Injury Factoring provides a predictable and stable cash flow for healthcare providers, reducing the impact of delayed payments.

• Operational Flexibility: Providers can use the advanced funds to meet immediate financial needs, such as covering payroll, purchasing equipment, or expanding services.

Repayment:

• Once the personal injury case is settled, the factoring company collects the agreed-upon amount directly from the insurance settlement or legal award. Any remaining funds, after deducting the factoring fee, are then forwarded to the healthcare provider.