Advance for Health Information Professionals published their annual HIM professionals’ salary survey results in the December Issue (pages 12-15). For the convenience of The Factoring Blog’s HIM readership, we’ve included some of the more pertinent findings below:

• 90% of respondents are full-time HIM professionals (up from 88% in 2008)
• 64% of those who responded to the survey are employed as a HIM director, coder, MT or cancer registrar
• Only 19% of respondents indicated that they were working more than 45 hours/week
• 46% said their salary had NOT increased from 2008
• 8% said their salary actually DECREASED from 2008

As many of The Factoring Blog’s readers already know, PRN Funding provides accounts receivable factoring to healthcare vendors such as temporary nurse staffing agencies, medical transcription services and medical billing and coding companies and most recently, private duty home care agencies.  By purchasing these companies’ invoices, PRN Funding provides the cash needed to sustain and grow a health care business.  We are pleased to announce some of our most recent fundings:

A Home Care Agency No Longer Has to Wait for the State to Pay
This Chicago-based home care agency owner had been staffing sitters and home care aides into peoples’ homes since the beginning of the year, getting paid routinely in every two weeks by the state of Illinois. However, as the fourth quarter approached, she watched her receivables age out.

Worried that the lag in her payments would eventually start affecting her ability to meet payroll, the agency owner Googled “home care factoring,” and clicked on the first search result-PRN Funding’s home care factoring page. After ten minutes of perusing the site, the agency owner called 866.776.5407, and was immediately connected to a home care factoring specialist. Two weeks later at the beginning of the fourth quarter, the agency owner presented PRN Funding with the first batch of invoices and had funds deposited directly into her account within hours.

An Ohio Medical Billing Company Gains News Business
Until recently, this Columbus-based medical billing entrepreneur had only been providing billing services for a handful of independent doctors in central Ohio. All it took was for one of those doctors to mention the medical billing vendor’s capabilities to an associate, and the billing company had the opportunity to sign on a medical clinic as a new client. He was ecstatic about the new business opportunity; however, there was one major problem. In order to win the business, he agreed to sign a contract with 45-day payment terms. The medical billing business owner knew he could float payroll for a month, but having to wait those last two weeks to get a check was going to make it very difficult for him to pay his employees on time.

Later that day, while paging through a current billing and coding journal, he came across an ad for a funding company that works specifically with medical billing and coding companies. The entrepreneur visited www.prnfunding.com and determined that medical billing factoring was truly the solution to his forthcoming cash flow problem. He filled out an online application, and within a week, PRN Funding had purchased his first invoice to the medical clinic.

Nurse Staffing Agency Switches Factoring Firms
Unhappy with her current funder because it didn’t know very much about the nurse staffing industry, this nurse staffing agency owner from Tennessee was researching factoring firms when she came across PRN Funding’s web site. She was pleased when she found out that PRN Funding had been factoring nurse staffing invoices for over 10 years, so she called the same day to learn more.

Within the twenty minute conversation, the agency owner found out that PRN Funding was already very familiar with the hospitals where she was currently staffing. Because of their nurse staffing expertise, PRN Funding was also able to advise the agency owner not to sign on with a particular facility because it had a record of paying 60 days beyond term. Floored by PRN Funding’s expertise, the agency owner decided to fill out an application that day.

Eight business days later, PRN Funding had completed the buyout process, communicated the remittance changes to the agency’s clients and purchased the first batch of invoices.
Click here for more information on PRN Funding’s accounts receivable factoring services.

According to AdvanceWeb.com, Alan F. Dowling, PhD was recently appointed as the new CEO of the American Health Information Management Association (AHIMA). He will assume his new role on January 13, 2010.

This statement was release in the official press announcement:

“Dr. Dowling has a deep understanding of the complexity of issues facing our association, our members and our industry, as a whole. His experience in the areas of health information and informatics, as well as healthcare delivery systems, gives him keen insights into what will be vital to the next decade of health information management and technology,” AHIMA board president Vera Rulon said.  “He is the ideal person for the job ahead.”

Click here to read the entire press release: Dr. Alan F. Dowling Names AHIMA’s Next Chief Executive Officer.

Entering into the world of accounts receivable factoring can seem overwhelming if you are not familiar with factoring industry jargon. We’ve identified and defined some of the more common factoring terms for our readers below:

Account Creditor - You, the Client and provider of goods or services.

Account Debtor - The purchaser of goods or services; responsible for the paying invoice.

Advance Rate - Money provided immediately to the company factoring its accounts receivable–expressed as a percentage of the total invoice amount.

Discount Fee - A fee assessed by a factor that purchases accounts receivable. The discount fee is determined by the size of the invoice, the length of time it takes to collect the funds and the creditworthiness of the customer, not the company selling the receivable.

Factor - A company that provides operating capital to businesses by purchasing their accounts receivable.

Factoring - The business of purchasing and collecting accounts receivable.

Non-Recourse - Generally, a period in which accounts purchased by the factor remain the factor’s accounts and do not revert to the account creditor if unpaid due to an insolvency event. The factor accepts full credit risk for any and all accounts that it purchases during this period.

Recourse - Generally, a period in which accounts purchased by the factor are able to revert to the account creditor if unpaid due to an insolvency event. The client accepts full credit risk for any and all accounts that it sells to the factor during this period.

Reserve - Amount of money that is not immediately provided to the company factoring its accounts receivable when the account is purchased by the factor, expressed as a percentage of the total invoice amount.

Reserve Release - A bonus paid back to you as a result of prompt paying of receivables by your customer. (Advance Rate + Reserve = 100% of Total Invoice) The Reserve, minus the discount fee, is transferred to the client once payment is received by the factor.

Click here to learn more factoring terminology.

The American Academy of Professional Coders (AAPC) is now offering a distance learning training series for the complete 2010 coding updates.  Instead of waiting for a workshop in December to get updated with the new codes, these updates will be released upon renewal of the most recent update.  Along with the three Webinars, a CD and eManaul are also included with each session. 

Listed below are the 2010 coding updates covered in the series:

• ICD-9-CM (September release; 2 CEUs)
• CPT (November release; 3 CEUs)
• HCPCS Level II (December release; 1 CEU)

Sheri Poe Bernard, VP of clinical coding content at the AAPC, believes this series is a “must-have” for all coders. 

The training series is available for purchase now at AAPC’s web site.  You can also call 800-626-CODE to get more information.

In a recent press release, the American Association of Healthcare Administrative Management announced that it will hold its Annual National Institute from October 14-16 in Scottsdale, AZ at the Fairmont Princess Resort and Spa.  The conference will focus on the future of health care in the U.S.’s changing economy. 

Over the three days, there will be educational sessions, opportunities to hear from keynote speakers-over 50 of them-as well as networking in an exhibit hall.  The speaker series will focus on five health care topics: management/revenue cycle, access/quality management, compliance, leadership/professional development, and specialty. 

For more information about the event, visit www.aaham.org or contact AAHAM directly at (703) 281-4043.

The American Academy of Professional Coders (AAPC) is asking for speaking commitments from payers, providers, and administrators in the coding industry.  Online applications are currently being accepted through September 20.  The organization is looking for speakers to discuss the latest trends in health care and current topics within the industry. 

A list of sample topics can be found on the AAPC website.  Selected speakers will be notified by email by November 20. 

The 18^th national conference, which will be held in Nashville, TN from June 6-9, will feature 45 educational sessions and more than 70 exhibitors. 

To learn more about the program, click here: AAPC Issues Call for Speakers for 2010 National Conference

President Obama’s Council of Economic Advisors released a report Monday surveying the parts of the labor force that are expected to grow most rapidly in the future.  The report is a reminder to everyone in the health care industry that it is one of the few industries still growing.

Specifically, professions in health care including home health care, outpatient care, and medical laboratory positions will add the most jobs. 

This is good news to our clients as well as to entrepreneurs looking to start their own healthcare-related business!

Click here to read the complete New York Times article: Job Growth in Health is Expected to be Strong

As President Obama advocates for a health care system overhaul, many Americans are questioning how it will function as well as how the country will pay for it.  The Wall Street Journal’s Health Blog profiled Obama’s televised town hall meeting on ABC last week to try and explain his plans in more detail. 

The President assured Americans that the government will not force them to switch doctors or health insurance plans.  Also, private companies will still be able to choose different plans for their employees on their own.  However, critics argue that given a cheaper government option, most businesses will jump ship from private insurance companies. 

Health insurance companies feel threatened by the proposal, stating that a government program would put them out of business.  Obama responded to these concerns by admitting he wasn’t sure a government plan would be included in his final proposal. 

Additionally, Obama explained that the funding for his health care system would either come from lowering the amount that wealthy Americans can deduct on their taxes or from taxing health benefits. Regardless of how he accomplishes this, many wonder if Obama will be the first president to solve the problem of uninsured Americans. 

Little is known right now about how President Obama’s healthcare reform will affect healthcare vendors like medical billing and coding companies and/or temporary nurse staffing agencies. They will have to wait patiently to see how the President’s changes will affect them. 

To read the entire Wall Street Journal Blog article, click here: Separating Fact from Fiction on Health-Care Reform

To view a clip of the town hall meeting, click here: President Obama Defends Right to Choose Best Care

For a full transcript of the meeting, click here: Questions for the President: Prescription for America

Some interesting statistics were announced at last week at the annual South Florida Summit. Caroline Rossi Steinber, a trends specialist with the American Hospital Association (AHA), shared the following information with attendees:

90% of surveyed hospitals have made cutbacks as a result of the tough economic times, with the biggest cuts in administrative expenses.

43% of surveyed hospitals had a negative net return for the first quarter, which was 17% higher than the same time last year

65% of hospitals reported that they witnessesed an increase in the number of physicians seeking employment

In addition, according to Darren P. Lehrich, Deutsche Bank’s managing director of healthcare providers research, for profit hospitals’ stocks have increased 70% in the past three months. Moreoever, the profit margins for publicly traded hospitals during the quarter were the highest they’ve been in a number of years.

A big concern for hospitals across the U.S. is how the concept of public health insurance will be interpreted and enforced in the future.

The AHA’s studies show that most hospitals are relying on current government payers like Medicare and Medicaid, whose combined brings in 56% of the revenue, while private insurance accounts for 43% of revenue.

Steinberg noted that providers depend heavily on private insurance providers to pay the bills because Medicaid only reimburses 90% of their costs and private insurance generally reimburses 130%. If the public health insurance is specified as a health insurance option for the uninsured, it would help hospitals immensely by reducing the uncompensated care. On the other hand, if public health insurance is used as a “cheap public plan open to everybody an reimbursed providers at low rates,” it would be devastating to the hospital industry.

Click here to read more details: Hospitals cutting back.