Home Care Invoice Funding – Is it Right For Your Private Duty Agency?

There are many reasons why a private duty agency would try to qualify for home care funding. However, the most common motive is that they cannot afford to wait weeks or months to be reimbursed by Medicaid or another governmental agency.

Without a constant inflow of cash, home care agencies run the risk of not having enough capital to meet payroll, pay vendors or grow their business. Fortunately, home care financing can provide the necessary capital to help struggling private duty agencies maintain a healthy cash flow.

Click here to access key questions that will help you decide if home care invoice funding is right for your private duty agency.

PRN Funding to Give Away Amazon Gift Card at Private Duty Home Care Leadership Summit

Las Vegas, NV-PRN Funding, LLC is excited to speak with private duty home care agency owners about factoring at the 7th Annual Private Duty Home Care Leadership Summit & Exposition at the Bellagio in Las Vegas.

Marketing Manager, Nikki Flores will be in booth #303 January 23-25 speaking with private duty home care business owners about how they can turn their receivables into cash immediately through private duty home care invoice factoring.

In addition to learning about invoice funding options, all attendees are invited to stop by booth #303 and enter our drawing to win a $100 Amazon gift card.

Click here to read the official press release: Private Duty Home Care Association Invites Factoring Firm as a First-Time Exhibitor.

Factoring Brokers Should Know Their Funders

Cash flow consultants know that factoring is a great way to ease their clients’ cash flow tensions. However, pairing a prospect with the wrong factoring company could be even more detrimental to your client’s cash flow. Not to mention, sending a prospect to the wrong funder could also damage the relationships you have with your client and the funder. In order to avoid such a catastrophe, it is extremely important for consultants and brokers to know how each of their funding partners’ factoring programs work so they can match their clients with the most appropriate one. The best way to get to know your funders is to ask the following four questions…

One: What is your focus?
In general, factors can be divided into three different operating categories. First, there are large factors that operate nationally and are able to fund clients across numerous different industries. On the other hand, there are some factors that focus their operations in one specific geographic region. These smaller local factors have a home field advantage because their clients like knowing that their factor is literally right around the corner. The last category is comprised of factors that concentrate their funding in one specific niche. (For example, PRN Funding only factors invoices for medical vendors.) These factors’ clients appreciate the fact that their funder understands their specific industry.

Click here to read the rest of the Questions Factoring Brokers Should Ask to Get to Know Their Funders.

PRN Funding’s 2012 Trade Show Schedule

Curious about PRN Funding’s healthcare factoring services?

Check out our 2012 Trade Show schedule. We’d love to see you if you’re planning on attending any of the shows below:

Trade Show Location Dates Booth #
NAHC Leadership Summit Las Vegas, NV Jan 23-25 303
ACE12 Indianapolis, IN Aug 8-11 108
NPDA Orlando, FL Sept 12-14 TBD
Decision Health Las Vegas, NV Nov 2-4 TBD

2011 – Year of Alternative Financing

Did you happen to see the story on SmallBizTrends.com entitled: Small Business Story of the Year: The Rise of Alternative Lending?

It was an excellent post about how bank lending declined in 2011, but alternative financing lenders such as Credit Unions, Community Development Financial Institutions (CDFIs), Micro Lenders and Accounts Receivable Factoring Firms increased their lending capabilities for small business owners.

Specifically, the article stated that large banks rejected small business loan applications 90 percent of the time in 2011, whereas smaller financing institutions and alternative lenders approved nearly half of all the funding applications. Moreover, in November alone, alternative lenders approved 62 percent of small business funding requests.

Home Health Care Reform

Changes in healthcare are taking place all throughout the country, including the home. According to Healthcare Finance News, The Alliance for Quality Home Care (AQHC) recently outlined its new policy on post-acute healthcare reform. Post-acute healthcare refers to home care that people receive when they are not sick enough to be in the hospital, but need medical attention and help with daily activities. The AQHC outlined three main objectives of their plan:

Patient Needs First: The needs of patients must be the driver of reform. The reform is intended to integrate systems and put all people involved in home care on the same page with aligned incentives, rather than mixed incentives, in order to match each patient individually with their needs.

Payment Tied to Quality: Performance metrics must be developed that better apply across all care sectors, and also keep the “big picture” of total care in mind to see how each caregiver is performing in context. High performers get compensated for their work, which will encourage only the best care.

Adequate Payment: While not easy to accomplish in times of budget cuts, with the proper structure in place adequate compensation can be given. This requires looking at situations that providers face and making cuts accordingly, not across the board.

For the full article, see Nursing Home Alliance Offers Post-Acute System Reform

Meet the Founder of PRN Funding

Philip Cohen is the founder and President of PRN Funding, LLC. PRN Funding is an extraordinarily focused niche player in healthcare funding. With years of experience in the healthcare industry, PRN Funding exclusively factors the accounts receivable of temporary nurse staffing agencies, medical transcription services, medical coding companies, medical staffing companies, private duty care agencies and any other type of business who sells goods or provides services to healthcare institutions.

Prior to founding PRN Funding, Mr. Cohen spent a decade responsible for corporate joint ventures, strategic alliances and growth initiatives in the medical transcription industry. As Vice President of Corporate Development for Medical Records Corporation, he initiated and finalized numerous acquisitions, including six medical transcription service companies.

Mr. Cohen coordinated Medical Records Corporation’s merger with Medifax/SecrePhone, which resulted in The MRC Group. Upon merger completion, he assumed the role of Senior Vice President/General Manager. In addition to his corporate development responsibilities, Mr. Cohen guided the successful launch and ongoing operation of PowerScribe, the leading product in the integration of speech recognition and medical transcription.

Click here to continue reading Philip Cohen’s Biography.

Accounts Receivable Factoring: Funding Solution for Medical Coding Companies

Even though there are signs that the economy is on the rebound, it’s still tough for small businesses to find financing. Banks remain steadfast on their lending criteria and credit card companies continue to raise interest rates and decrease credit limits. So how can medical coding companies weather the economic downswing if traditional funding sources don’t let up on their credit restrictions? The answer is simple – medical coding factoring.

Factoring, also known as invoice funding, is the process of converting a company’s receivables into cash by selling outstanding invoices to a ‘factor’ for a discount. Invoice funding is particularly useful to medical coding companies because many of their customers expect prompt delivery of coding services, while extending their payment terms. Selling its invoices to a factoring firm allows a medical coding company to increase their cash flow without acquiring debt.

Medical Coding Invoice Funding Provides Immediate Access to Working Capital
Medical coding companies provide coding on a daily basis; however, they typically don’t receive payment for those services until weeks after the work has been completed. Waiting to be paid makes it harder for these businesses to meet their financial obligations in a timely manner. Selling medical coding invoices to a factoring firm is a speedy solution to fill the cash flow gap. For starters, the factoring application process is quick and easy. In most cases, a factoring firm only needs to review a current invoice aging report and an executed application to get the process started. Once approved, medical coding companies can receive cash within hours of selling invoices.

Medical Coding Factoring Helps Build Business Credit
One of the best things about factoring is that it’s not the same as a small business loan. Because of this, there is no debt, and there are no monthly payments to ‘muddy up’ the company’s balance sheet…

Click here to read more about medical coding invoice funding as a financing solution.

Elderly Patients Hit Hardest By Nurse Shortage

The nurse staffing invoice funding experts at PRN Funding recently came across a blog entry by Brooke Stafford (a nursing practitioner student and also writes for Family Nurse Practitioner Degrees) that we wanted to share with our nurse staffing industry readers.

Ms. Stafford wrote about Five Ways the Nursing Shortage is Affecting the Elderly, which we condensed below:

  1. Too many patients – Because there are fewer nurses to go around, they often take on more patients than they can effectively handle.
  2. More mistakes – If your nurse doesn’t know one patient from the next, it can be easy to confuse treatments, drugs, and more.
  3. More falls – While in a health care facility, falling is one of the most common ways seniors injure themselves.
  4. Quicker discharge – Ever feel as if you’re being rushed out of a hospital or other health care facility? The nursing shortage might be to blame.
  5. Quality drop – This is perhaps the most dangerous way the nursing shortage is affecting the elderly.

Private Duty Today Posts About Social Media Usage

The Private Duty Today blog had an interesting post about social medial usage in the private duty home care sector. The private duty home care factoring specialists wanted to share some of the surveys findings with our readers, such as:

When the survey participants were asked How Important is Social Media to Your Future Success?, they responded:

46.8% – Yet to Be Determined
34.2% – Critical
12.7% – Important
6.3% – Not Important

What type of social media marketing as your company used?

88% – Company web site

63% – Facebook
48% eMail Newsletters
36% Twitter
35% Blog

Check out all of the results on Private Duty Today’s Blog Post: Social Media Marketing in Private Duty Home Care.

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