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 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.

Temporary Staffing Industry is Booming

According to the federal Bureau of Labor Statistics, changes in the “temporary help services” category typically prefaces similar changes in non-farm payrolls around 5 months later, and since hitting its lowest point in August 2009, temp jobs have been on a steady incline.

In fact, according to the American Staffing Association, US staffing firms employed 2.8 million temporary and contract employees per day in 2011, which is up 8% since 2010. Moreover, the Bloomberg US Employment Services Index (made up of 17 staffing and recruiting firms) has increased by 15%. Additionally, the temporary staffing industry’s sales was $98.3 billion in 2011, which was 12.4% more than 2010 sales.

Richard Wahlquist , president and CEO of the American Staffing Association, recently said: “Companies no longer look upon temporaries as a gap measure. Now, the largest companies have a specific model of how much of their work force is going to be temporary.”

It’s important to keep in mind that as these agencies continue to grow, the need for staffing payroll factoring will also increase.

Click here to read the entire article: Temp Agencies Signal Economy’s Health, Direction.

Aging Workforce is Straining Social Security

Did you happen to see the Associated Press article on Monday entitled: Aging workforce strains Social Security, Medicare?

If not, the healthcare factoring specialists at PRN Funding summarized the startling findings below:

Social Security and Medicare, the government’s two largest benefit programs, are in worse shape than previously thought due to the increasing aging population and the slow-rebounding economy. Moreover, Medicare is in the worst shape because of rising health insurance costs.

The predictions from last year was that the Medicare hospital insurance fund for seniors would run out of money in 2024, and Social Security’s retirement fund would run out in 2038, with the disability fund running out of money by 2018.

The latest projections from March indicate that the disability fund would run out of money two years earlier in 2016.

Temporary Hospice Staffing Factoring Case Study

The temporary hospice staffing factoring specialists at PRN Funding recently invited one of our current hospice staffing clients to “spill the beans” in a tell-all interview about her experiences with using PRN Funding as a medical staffing factor.

Although the video and printed interview is posted on PRN Funding’s web site, we also included them on The Factoring Blog for all of our medical staffing agency owners.

Chastity Williams has a big heart, and she had a big dream. As a long term care nurse she had many encounters with hospice nursing. In 2007, there was a tremendous nursing shortage and hospice was a very misunderstood area of health care. Chastity knew she could help make a difference in people’s lives and wanted to start her own hospice temporary staffing agency – Nursing by Demand.

“Like everyone else, I had an idea and thought I’d open a business. When I started I was all heart and had big ideas for the nursing part, but I didn’t know as much about the business part.” She felt uncertainty as many entrepreneurs do, and wondered how she’d be able to raise payroll.

“Chastity had a couple clients lined up before she started, but as in many new business situations, they didn’t pay quite fast enough. So she didn’t have the cash on hand to meet payroll. That’s a lot of pressure for a new business,” says Ryan Elliott, her Account Manager at PRN.

A business loan was out of the question – Chastity was adamant that she didn’t want to start a business with debt. She did some research and came across PRN Funding’s web site as well as some others, and looked into several.

Click here to continue reading why Chastity decided to choose PRN Funding as her hospice staffing factor.

Cleveland Clinic Will Hire 600 Nurses

From March 28-30, the Cleveland Browns Stadium is being transformed into a three-day recruiting blitz for the Cleveland Clinic.

1180 nurses are pre-registered for the event, and many more are anticipated to come as “walk-ins”. The Cleveland Clinic is holding the job fair in order to fill 400 vacant positions and 200 news ones. Specifically, the Clinic is hiring medical surgery nurses, advanced practice nurses, imaging nurses and intensive care nurses.

The Stanley Shalom Zielony Institute for Nursing Excellence is hoping to build brand awareness and make nurses aware of all of the hospitals that the Cleveland Clinic has.

Nurse Staffing Account Receivable Factoring – How to Get Started

Factoring firms receive all sorts of questions from business owners in regards to their services. From the cost of factoring to the length of time one is required to remain in a factoring relationship, we’ve heard it all. However in this article, I’d like to answer one of the most frequently asked questions about nurse staffing account receivable factoring: What is needed to complete an initial factoring transaction?

  1. The first thing a nurse staffing account receivable factor does prior to an initial funding is check into the creditworthiness of the agency’s customers. Credit approval for a first-time debtor (customer) is simple. The agency supplies the factor with the name and address of the new debtor, and then the factor will run credit on that debtor. Once approved, the agency can present invoices for sale.
  2. The business owner sends out the original invoices to their debtors as normal, and then sends a copy of those invoices along with proof of performance (signed time sheets) to the factoring company. This can usually be accomplished via fax or email. It’s important to note that the nurse staffing account receivable factoring company will only purchase invoices for shifts that have already been worked.
  3. The account receivable factor will then verify that the invoices are valid by speaking with a nurse scheduler or Director of Nursing (DON) at the facilities where the shifts were worked just to confirm that the nurses worked the shifts listed on the invoices.

Click here to read about the rest of the Steps to Complete an Initial Nurse Staffing Account Receivable Factoring Transaction.

New Web Site and More for National Nurses in Business Association

The National Nurses in Business Association (NNBA) sent out an eNewsletter this week full of some exciting announcements:

First the nurse entrepreneur organization launched a new website in late January. The new site is easy to navigate, has a print option for each page, and has a quick find feature. Photos of NNBA members are also a part of the website. Click here to check out the new NNBA web site.

In addition, the NNBA launched a monthly newsletter this year, which will highlight members and their accomplishments, and report nurse entrepreneur news and upcoming events.

Finally, the NNBA and the University of Florida are collaborating for the 27th Annual NNBA Conference: Healthcare Self-Employed Entrepreneurship Summit. The event is scheduled for August 18 and 19, 2012, in Orlando, Florida. Click here for more information on the 2012 NNBA Conference.

The Truth about Allied Health Staffing Invoice Funding

Invoice funding is a great financing tool for allied health staffing agencies because it bridges the gap between when agency owners invoice a medical facility and when that facility pays. Unfortunately, some allied health staffing business owners are still hesitant to take advantage of all that invoice funding has to offer because of all the misinformation circulating out there. Allow me to debunk some of those myths about allied health staffing invoice funding.

Myth #1: Allied Health Staffing Invoice Funding is an Expensive Financing Option

Truth: First and foremost, an invoice funding fee (i.e. a factoring fee) is not the same thing as an annualized interest rate. For example, an allied health staffing invoice financing company may charge 3% per month, but that’s not the same thing as 36% APR. Rather, an invoice funding firm’s fees stop the day an invoice is paid. Furthermore, allied health staffing agencies can’t and won’t wait 12 months to receive payment for their staffing services. Most agencies agree to payment terms somewhere between 30 and 45 days. So in reality, allied health staffing invoice funding is not costly.

Myth #2: Allied Health Staffing Funding Companies Require a Long-Term Commitment

Truth: Unlike a traditional line of credit through a bank loan, most allied health invoice factoring companies do not require a long-term commitment. In fact, some invoice funding companies only ask for a six month commitment, while others do not require a fixed-term at all.

Click here to read the entire article: The Truth About Allied Health Staffing Invoice Funding.

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