Let’s face it, in the medical industry, it can be frustrating to wait for medical claims to payout. Unfortunately, the claim payment process is not fast and only a few are paid quickly. And now during a pandemic, there is uncertainty.

With an average of 30 – 120 days to wait for payment, medical practices can suffer from a lack of cash flow. This is a great challenge as a practice needs cash flow to continue with its day-to-day operations.

This is where medical factoring comes in as a simple and fast working solution. There’s no need to worry about payment delays or cash flow problems.

In this blog, we will discuss what medical factoring is, the benefits thereof, how Mettle Medical Finance (MMF) can assist you, and more.

Table of Contents

What is Medical Factoring?

Medical factoring solves cash flow problems caused by slow medical claim payments. Thus, a medical factoring company provides a practice with fast payments of approved medical claims. This is a great short-term financing solution to get the practice back on its feet and continue with its daily operations.

Benefits of Medical Factoring

  • Cash flow certainty – bridge the gap between submitted claims and the payments thereof. 
  • Reduce administrative burden – there’s no need to chase behind outstanding claims; continue with your medical duties. 
  • Minimise potential bad debt – because of the guaranteed cash flow, your medical practice can keep up to date with its expenses (staff, equipment, facilities, etc.). 
  • Opportunity for growth due to funding – take advantage of this working capital to grow and improve your medical practice (equipment, facilities, etc.). 

There are other benefits of medical factoring that are specific to medical industry situations.

Is Medical Factoring Right for You?

Naturally, any medical practice can benefit from medical factoring, however, some might predominantly benefit more than others. Cash flow problems have a great impact on new medical practices and those that are experiencing rapid growth. 

Here are some considerations on whether medical factoring is right for you: 

  • A new/growing medical practice that doesn’t have access to traditional financing sources. 
  • A mature medical practice that is in need of cash flow. 
  • A medical practice that is recovering from bankruptcy. 
  • A medical practice that requires working capital for payroll. 
  • A medical practice that is strategising/planning the growth of its facilities and/or equipment.

Introducing Mettle Medical Finance

Mettle Medical Finance (MMF) provides working capital to medical doctors, specialists, etc. by factoring their claims against medical aid funds. 

Healthcare professionals can take advantage of MMF’s ability to advance cash to a medical practice based on approved claims, submitted to the scheme via GoodX. 

Currently, MMF processes claims on behalf of the healthcare professionals that are administered by MHG, Discovery and Medscheme and will be extending these services to additional destinations in the near future. 

Currently, the following medical aids can MMF advance to the medical practice: 

  • MHG
  • Discovery 
  • Medscheme 
  • Bestmed

How It Works

When a medical practice sends a claim to the medical aid via GoodX: 

  • MMF also receives a positive payment response back from the medical aid. 
  • MMF then advances the claim to the medical practice. 
  • MMF waits for medical aid to pay the claim. 
  • The administration of the medical practice remains unchanged. 
Medical factoring process illustration via GoodX and MMF.

Get More Information

Any business must plan for the future, prevent insolvency, and be able to predict daily cash inflows. Now that you know more about medical factoring and how it can benefit your medical practice, you can make an informed decision about bridging the gap between approved claim submissions and claim payments. 

Download the attached brochure provided by MMF below. 

Mettle-Medical-Finance-Brochure-2020-GoodXLaai af

For more information, contact Mettle Medical Funding: