As time goes on, the line between healthcare and technology becomes more blurred. Technology and healthcare have been working together for decades. Many machines like CT scanners, sterilizers and automatic surgical tables becoming staples in hospitals and other medical environments.
Now, however, medical technology is presenting itself in new, less recognizable forms: wearable health monitors, smart scales and health-tracking applications, to name a few.
This relatively new type of medical technology is not usually created or manufactured by large companies made up of thousands of employees. This was not the case for medical equipment of the past. They’re made by smaller independent teams on tighter budgets. In fact, over 80 percent of the 6,500 medical technology companies in the U.S. have fewer than 50 workers.
Healthcare Technology and Small Business
As of 2017, the United States medical device market has a market size of around $156 billion. They are also responsible for around 2 million jobs with that number expecting to increase in the future.
The growth is projected to take place mostly in sub-industries of the medical technology market in fields like:
- Irrigation apparatuses
- Surgical appliances and supplies
- Medical instruments
- In-Vitro diagnostics
- Dental equipment and supplies
- Electro-medical equipment
- Wearable health devices
- Software, apps and computer programs
The smaller companies that create, program and manufacture these new healthcare technology devices and software do not have access to as much funding as larger, more established medical technology companies do. That said, they still are responsible for preventing, diagnosing and monitoring the health of their customers.
This is where medical technology factoring comes in.
Healthcare Technology Factoring
The field of medical technology is no longer being dominated by large corporations to push the limits and create new products. Small healthcare technology companies are the ones paving the way, creating devices, software and other tech that is more effective and less expensive. From large machines that scan entire bodies externally to microscopic robots that diagnose health issues internally, medical technology startups have taken over.
Medical technology factoring, also known as healthcare technology factoring, is the process of selling unpaid invoices in exchange for funding. This funding can provide healthcare technology companies with the money needed to pay their employees and prototype their devices. Also, they can market their work to potential clients like hospitals, big-box electronics stores, or online retailers.
In addition, healthcare technology factoring helps smaller businesses in the industry keep their cash flow regulated. This works to offset the net 30 to net 90 payment system adopted by the majority of medical establishments.