Nursing Homes Can Use Accounts Receivable Financing for Medicare Billing

Sweeping Medicare cuts can create real hardships for nursing homes that are obligated to care for residents. The demarcation between policy decisions and resident care may introduce more questions than answers about choices in medical services. Nevertheless, Medicare cuts do not equate to cuts in quality of care. Dedicated staff in many nursing homes will continue to provide quality care services to residents.

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With limited influence in decisions to cut payments, nursing homes must look for other options to cover services. CMS plans to monitor how payment changes might interfere with the quality of care. In the meantime, nursing homes can explore other resources.

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One possible solution is to use funding through an medical accounts receivable factoring process. Through a receivables funding program, nursing homes can have access to an asset-based credit line. Billings to Medicare and other third-party payors are used to subsidize costs that require immediate attention to continue resident care.

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Even without cut to Medicare, nursing homes often experienced long delays between billing the government and receiving payments. Long delays can create cash flow gaps that hinder the ability to pay utilities, vendors and salaries.

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Sweeping Medicare cuts can create real hardships for nursing homes that are obligated to care for residents. The demarcation between policy decisions and resident care may introduce more questions than answers about choices in medical services. Nevertheless, Medicare cuts do not equate to cuts in quality of care. Dedicated staff in many nursing homes will continue to provide quality care services to residents.

‍

With limited influence in decisions to cut payments, nursing homes must look for other options to cover services. CMS plans to monitor how payment changes might interfere with the quality of care. In the meantime, nursing homes can explore other resources.

‍

One possible solution is to use funding through a medical accounts receivable factoring process. Through a receivables funding program, nursing homes can have access to an asset-based credit line. Billings to Medicare and other third-party payors are used to subsidize costs that require immediate attention to continue resident care.

‍

Even without cut to Medicare, nursing homes often experienced long delays between billing the government and receiving payments. Long delays can create cash flow gaps that hinder the ability to pay utilities, vendors and salaries.

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Post-acute care is important to maintain the quality of life for residents in nursing homes. Deeper spending cuts may eventually lead to reduced hours in care. Or, the cuts may galvanize nursing home administrators to look for financing alternatives and prevent cutting care to residents.

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Nursing homes are a cost-effective way for people, most often the elderly, to receive extensive care without remaining in a hospital. Generally, nursing homes offer care for injuries, acute illnesses or postoperative treatment. Many also provide custodial care such as assistance with eating, bathing and getting dressed.

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People in these facilities are usually eligible for Medicare, which covers the cost of care when they enter nursing homes from the hospital. Under certain limitations, Medicare also pays some of the costs for skilled care for rehabilitation services. These may include respiratory therapists, physical therapy and occupational therapy.