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Medical billing is incredibly complex and it’s about to become more so.   There is a mandate to increase the number of CPT codes to over 63,000 by the year 2013.  This would represent a nearly ten-fold increase!  It’s important that providers start getting their arms around this right now and not wait until the last minute in order to be in compliance.

How will the CPT code mandate effect medical invoice factoring?  Clients that have billing systems that are in conformity and employ personnel that have been well-trained will stand a better chance to qualify for factoring.   In general, (aside from the CPT code challenge), when a medical factoring company has confidence in the pratitioner’s billing system, they are likely to provide the higher advance rates and a more favorable fee structure.

A required due diligence audit is conducted by the factoring company to test the client’s billing system at the inception of the factoring relationship.  This is done to assess the quality of the system and help the factor determine the average net collectible percentage the client will receive from third-party payers.   This percentage is applied to future advances given to the provider for invoices submitted to the medical factoring company.

Do you have questions about the upcoming CPT code mandate?  Contact Deb Beveridge at dbeveridge@comcast.net

Are you a practitioner in need of ongoing working capiital?  Click here for a free quote.