Invoice FactoringINDEX

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Medical and Healthcare Invoice Factoring

Medical factoring is underwritten against insurers and payers, not patients, and the collection cycle is unlike any other industry.

By Vlad Ivanov · Updated 2026-07-29 · How we test

Healthcare receivables are factored against third-party payers — insurers, Medicare, Medicaid, managed care organisations — rather than against patients. Credit quality is high. Predictability is not, because reimbursement is adjudicated rather than simply paid, and that single fact shapes the entire product.

What makes medical factoring different

  • Claims are adjusted, not just paid. The amount collected routinely differs from the amount billed, sometimes substantially.
  • Advance rates reflect expected net collections, not the face value of the claim. A 90% advance on expected net is a very different number from 90% of billed charges.
  • Denials and resubmissions extend the cycle unpredictably, and a denied claim is not the same as an unpaid invoice.
  • Regulatory constraints apply to assigning certain government-program receivables.
  • HIPAA governs what patient data can move to the factor and how it is handled.

The billed-versus-collected gap

This is the number that decides your economics. If you bill $100 and historically collect $62, a factor advancing "80%" is advancing 80% of expected net — roughly $50 — not $80. Practices that model the advance against billed charges consistently overestimate the cash they will receive and are surprised at the first funding.

Ask directly: is the advance calculated on billed charges or on expected net collections, and what net collection rate are you assuming for our payer mix?

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What to ask

  1. Is the advance calculated on billed charges or expected net collections?
  2. What net collection rate are you assuming, and how was it derived?
  3. How are denials and resubmissions handled — chargeback to us, or carried by you?
  4. Do you handle Medicare and Medicaid receivables, and under what structure?
  5. What reporting do you need from our practice management system, and can you integrate directly?
  6. How is HIPAA compliance handled in your data flow?

How to read the blanks on this site

Every populated figure on this site was read from the company's own published pages, with the source and date attached. Where a cell says Not published, the company does not put that term in writing on its site — and in a market where the contract matters more than the headline rate, what a factor declines to publish is often the more useful signal. We never fill a gap with an estimate.

Who it fits

Practices, clinics, home health agencies and medical staffing operations with a payroll or supplier cycle far shorter than their reimbursement cycle. It fits badly if your denial rate is high — factoring a receivable that gets denied creates a chargeback, and a high denial rate means the underlying problem is billing quality rather than payment timing.

If denials are your issue, revenue-cycle management is the fix, and several medical factors offer it alongside funding. Price that separately.