Home Healthcare Factoring: The Right Funding Solution for Your Home Health Care Agency

Instead of waiting weeks or months to receive payments from Medicaid, Medicare, insurance companies and/or private consumers, would your home health care agency rather have your cash immediately? Did a bank recently turn down your business loan application? Are your home health care receivables available to be collateralized?

If you answered ‘yes’ to one or all of the questions above, then home health care agency invoice financing is by far the best funding option for your business. Allow me to elaborate…

Home health care invoice funding is the conversion of accounts receivable into cash by selling outstanding invoices to a factoring firm. Home healthcare agency financing is a viable financial solution that gives companies immediate cash to manage operations more efficiently. Home health care care agency owners can then use liquid capital to make payroll, pay taxes and meet other recurring financial obligations.

Click here for some additional key concepts about home healthcare agency invoice funding.

Health Care Staffing Factoring Helps Business Owners Expand Agencies

Health care staffing factoring is beneficial for growing agencies struggling to make payroll while their clients (medical providers) take weeks or months to pay for their services. Oftentimes, these agencies can’t qualify for traditional financing because banks look at a company’s past-aka: a profitable operating history-in order to extend credit. However, medical staffing funding companies are more concerned with the agency’s future-aka: its growing accounts receivable-in order to extend credit. Let’s take a look at how one healthcare staffing agency used invoice factoring to improve its cash flow.

Slow Payments Hinder an Agency’s Growth
A new healthcare staffing agency was successfully staffing LPNs and CNAs at a handful of local hospitals. Since the company’s inception six months ago, it had gained an outstanding reputation for placing the most qualified and hard-working nurses. Even though the healthcare staffing agency was a popular choice, the owner kept turning down new clients because he was struggling to make payroll and pay taxes. Simply put, payments coming in were much slower than the agency owner had originally anticipated, and his cash flow was out of sorts.

Click here to find out how the health care staffing agency owner used invoice funding to help stabilize his cash flow.

Medical Dictation and Transcription Goes Mobile with New Application

Webahn, Inc. recently announced the release of Accent HD, which is a new app for iPad that helps doctors dictate, review reports, print, and manage files in multiple formats such as PDF, RTF, and Text.

“Our goal is to provide flexible technology that moves with health care providers,” Vinu Nair, Webahn CEO said in the official press release, “Our solutions help doctors improve productivity and spend more time with patients.”

In essence, Accent HD is an app that offers a simple but intuitive interface for dictation that uploads via WiFi to OvernightScribe. Files are then transcribed, and posted in the clinic account. Physicians can carry the iPad with them to review archived reports, then dictate immediately upon seeing a patient.

Click here to read the official press release: New iPad App Accent HD Takes Medical Dictation and Transcription Mobile

Happy Medical Transcription Week 2012

Did you know that President Ronald Regan established May 20-26 as National Medical Transcriptionist Week? He did–In 1985.

So the medical transcription invoice funding experts at PRN Funding, LLC wanted to wish all of medical transcription blog readers a very Happy Medical Transcription Week!

Of course, the MT industry is not going away, but it is in a constant state of flux as large MTSOs acquire small ones in addition to incorporating EHRs. If you’re an MTSO or a transcriptionist, we want to hear your thoughts on the future of the industry. Feel free to leave comments.

Hospitals Benefit from Outsourcing Release-of-Information

Did anyone happen to read ROI in a Hybrid Environment in For The Record magazine’s April 23rd issue? It a nutshell, the article discussed the pains involved with switching over a facility’s paper medical record system to an electronic medical record system. The article referred to the transition phase as an ROI (Release-of-Information) Process.

Although the article was an interesting read, the outsourced medical transcription factoring specialists at PRN Funding wanted our MTSO audience and any other business owner of an outsourced healthcare company to be aware of the side bar article that accompanied the article, Outsourcing Can Help. It caught our attention, and for the convenience of our business owner readers, we’ve summarized the small article below:

A lot of hospitals think that transitioning to EHRs will reduce staffing needs around ROI–This assumption couldn’t be further from the truth. As a matter of fact, the staffing needs tend to increase in order to avoid falling behind while personnel adjust to new policies and procedures. Furthermore, there’s an underlying need to have specially-trained individuals to help train staff and assist with ROI implementation.

Steve Hynes, president of MRO Corp was quoted in the article: “Switching to EHRs “can be very resource intensive for the hospital and specifically for the HIM department to manage the changes while keeping up with day-to-day operations…Over a long period [resource needs] might fluctuate, but there will be a temporary bubble to get everyone up to speed during the conversion.” And that’s exactly where MRO Corp because outsourcing ROI is a way to lessen the labor-intensive burden.

We may be jumping the gun, but it sounds like outsourced ROI companies could be another good candidate for invoice factoring, as hospitals routinely take their time paying vendors.

Small Business Lending on the Rise in 2012

SmallBizTrends.com recently had some exciting news to share about small business lending–The site highlighted some key findings of Omega Performance’s 2012 Banking Trends Outlook Survey, such as:

  1. 19.8% of U.S. banks plan to ease their lending standards for consumer and commercial loans
  2. 73.5% of United States banks plan to do more commercial lending
  3. More than 78% of banks reported they will pursue small business lending in 2012
  4. 66% of U.S. banks think the economy will “improve slowly” for the remainder of 2012

Click here to read more on SmallBizTrends.com: Is Lending on The Up?

What is Invoice Factoring?

In a nutshell, invoice factoring is the process of converting the accounts receivable of a business into cash by selling outstanding invoices to a factoring company for a discount. Businesses who factor their receivables get cash up front to cover payroll and payroll taxes and pay their vendors on time.

PRN Funding’s president, Phil Cohen, explains invoice factoring in more detail in the video below:

Medical Receivable Factoring vs. Healthcare Factoring

When it comes to factoring in the healthcare industry, there are two different kinds of companies that can benefit from what’s commonly referred to as healthcare factoring and/or medical factoring. Both types of healthcare companies make ideal invoice factoring candidates because both routinely bill creditworthy slow-paying customers. The Marketing Manager at PRN Funding took the time to explain the differences in the video below:

The first variation of the healthcare factoring model involves entrepreneurs who own a service-oriented business within the healthcare industry. Specifically, medical transcription services, medical equipment providers, medical supply companies, medical staffing agencies, temporary nurse registries, outsourced medical coding companies, medical billing services, etc. can all benefit greatly by factoring their invoices. Healthcare factoring can be extremely beneficial for vendors hoping to maintain a positive cash flow when their customers (medical providers) take weeks or months to pay them for their services or goods. Click here to learn more about PRN Funding’s healthcare factoring solution.

On the other hand, medical receivables factoring includes a third party payer (i.e. Medicaid, Medicare or private insurance company) within the medical invoicing process. In this instance, the medical provider is the one who benefits from factoring.

Medical receivables factoring is a great way for medical providers to bridge the cash flow gap that is oftentimes created by slow payments from insurance carriers and other third-party payers.

As experts in the healthcare factoring marketplace, PRN Funding has developed relationships with credible medical factoring companies that specialize in helping hospitals, nursing homes, physicians’ practices, etc. maintain a positive cash flow.

Click here for more information on healthcare factoring vs. medical factoring.