Healthcare factoring: steady cash while Medicare, Medicaid and insurers take weeks to pay.
Medical receivables financing advances cash against what insurers, HMOs, Medicare and Medicaid owe your practice, or against what hospitals and other businesses owe you for goods and services. It's based on the net realized value of your billings: what you actually collect, not what you bill. At 1st Commercial Credit, providers with up to $500,000 in net realized value use its healthcare factoring program.
Daniel Chirino · Business Development Officer, 1st Commercial Credit
Updated: October 29, 2026
- Since 20021st Commercial Credit
- 3,800+clients funded
- $5B+funded
- Direct fundernot a broker
- Every costin writing before you sign
1st Commercial Credit figures from its website, read October 29, 2026.
Two kinds of medical receivables
Third-party payors
What commercial insurers, HMOs, Blue Cross Blue Shield, Medicare and Medicaid owe you for patient care. Payment cycles are long and billing is complex, so the review looks at your billing as much as at the payors.
Commercial medical receivables
What hospitals, clinics and other businesses owe you for medical goods or services. Medical equipment suppliers and medical staffing agencies that invoice facilities are in this group.
How net realized value works
Your collection history
An audit of 4 to 6 months of recent collections sets your net realized value (NRV): the share of what you bill that you actually collect.
What doesn't count
Private copays, contractual reserves and receivables older than 180 days are left out of the funding base, and so are self-pay receivables.
Payors and compliance
A review of each payor class, how often it pays, your licensing and your recent surveys. Together, they set the advance rate.
What 1st Commercial Credit offers medical providers
The program
- Healthcare factoring for providers with up to $500,000 in net realized value. Above that, an asset-based receivables line priced over the Prime rate, if you meet its criteria.
- Approval in 3 to 5 days, then advances within 24 hours of verifying each invoice.
- No financial statements up to $350,000; what weighs most is the quality of your receivables and of your billing.
- Medicare and Medicaid receivables can't be assigned, so payments go to a lockbox in your business's name and are forwarded from there.
- An optional billing and collections service, separate from the financing.
- The program runs for at least one year.
Who it's for
Nursing homes, physicians and medical practices, hospitals, home healthcare companies, rehab clinics, MRI and radiology centers, ambulance services and laboratories with receivables from Medicare, Medicaid, HMOs and private insurance.
If you run a nurse staffing agency that invoices hospitals or facilities, not Medicare or insurers, the staffing program fits better.
Source: 1st Commercial Credit's medical providers page, read October 29, 2026. Terms are confirmed in writing before you sign.
When healthcare factoring is not the answer
- Most of your revenue is self-pay. Self-pay receivables aren't funded.
- You run a chiropractic clinic. 1st Commercial Credit doesn't fund them.
- Your receivables are mainly slow workers' compensation, personal injury or no-fault claims. Certain types of these are excluded.
- Your billing is behind or your claims are often denied. Fix the billing first: it's what the review looks at.
Questions medical providers ask me
Medicare receivables can't be assigned. How does this work?
Payments go to a lockbox set up in your business's name, and from there the funds are forwarded to 1st Commercial Credit.
How is the advance calculated?
From your net realized value, based on 4 to 6 months of collection history, after leaving out copays, contractual reserves and receivables older than 180 days.
Can you also handle our billing?
1st Commercial Credit offers billing and collections as a separate service. You can keep one without the other.
Who pays your claims?
Tell me your mix of payors and how long they take to pay. I'll tell you if healthcare factoring or a receivables line fits your practice.
Also read: staffing · accounts receivable financing · all industries