Mohs practices carry 60–90 days of revenue as a receivable. A yield-bearing reserve changes the math on bridging that gap without leaning harder on your credit line.
Mohs surgery practices operate with a significant cash flow challenge. These high-volume, insurance-billed businesses typically experience 60 to 90 day reimbursement cycles and traditionally fund the resulting gap using lines of credit, the same working-capital squeeze retina practices feel funding anti-VEGF drugs ahead of reimbursement, covered in how retina practices bridge the buy-and-bill cash gap (opens in a new tab). However, a yield-bearing reserve combined with virtual accounts offers an alternative approach.
A typical Mohs case generates several thousand dollars in billed revenue. Volume practices usually handle 10 to 30 cases weekly. While the economics are sound, success depends entirely on timely cash arrival.
Insurance reimbursement timing varies by payer type:
When accounts receivable average 60 to 90 days, practices carry approximately two months of revenue as receivables continuously. This AR must be funded, typically through expensive lines of credit.
An effective structure includes:
For a $1M to $3M operating reserve, idle cash earning interest generates $17,500 to $52,500 a year, the same yield math covered in how to optimize yield on a $1M practice operating balance (opens in a new tab). This approach doesn't eliminate the need for credit lines on difficult weeks but reduces dependency and creates a buffer for slower periods.
Banking features built for dermatology-specific revenue cycles (opens in a new tab) include flat $15 wire fees and free ACH transfers in both directions, enabling cost-effective cash management.