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.

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.

Huge Need for HIT Workers in Texas

Did anyone see Lisa Brzezicki’s recent post on Advance Perspective’s blog: Survey Reveals Lack of HIT Workers in the Lone Star State?

She discussed the results of a recent Texas Health Information Technology Employer Needs Assessment Report conducted by done by the Department of Health Information Management at Texas State University-San Marcos.

The report’s main findings: There will be a much greater need for health information technology (HIT) workers in Texas than previously anticipated.

Here’s what Lisa had to say about the report:

It is projected that Texas will need an additional 10,000 HIT workers for the state’s $103.6 billion healthcare industry by 2013. This gap is much larger than the original estimation that Texas would require an additional 3,500 HIT workers between 2010 and 2015. The results from this survey have shown the original 3,500 figure to be grossly under-estimated.

Led by Susan H. Fenton, PhD, the survey was conducted as part of a contract with the Texas Workforce Commission, with funding for the project coming from the governor’s office through a Wagner-Peyser grant. The study data was accumulated by conducting HIT employer focus groups across the state and through a statewide HIT employer survey.

The HIT Employer Needs Assessment has demonstrated that Texas providers (clinics and hospitals) are conservatively estimated to need 9,500 HIT employees between now and 2013. Non-providers (HER vendors and consultants) reported needing an additional 500 HIT employees by 2013, so it is conservatively estimated that Texas will need an additional 10,000 HIT workers by 2013.

According to the report detailing the study, results indicate that the current Texas HIT workforce is insufficient to meet the needs. This gap will only grow and the quality of care for Texas citizens will suffer if action is not taken. Bridging this gap will require a collaborative effort between employers, educational providers, public organizations and others to develop and implement a plan of action.

To read the full text of the report, go to www.health.txstate.edu/him/TxHIT-workforce/news/contentParagraph/03/document/TexasHITEmployerNeedsAssessment_RELEASED_03302012.pdf

CDIA (formerly MTIA) Closing its Doors

Did any of our medical transcription invoice factoring blog readers see the letter that the board members of the Clinical Documentation Industry Association posted on their web site?

If not, here’s a copy of what’s on the site’s home page:

Dear CDIA Members and Supporters,

The Clinical Documentation Industry Association (CDIA) has weathered many financial challenges over the past few years from the significant contraction in the marketplace and overall unhealthy economic conditions. In response, we rebranded the association to expand our reach beyond medical transcription, editing, voice, and speech recognition to encompass every touch point in the clinical documentation continuum. Our flagship event, the CDIA Annual Conference, had broadened the educational program to bring together these complementary audiences.

Unfortunately, the external factors have become too strong for the association to overcome and this is why we are writing to you today. On behalf of the CDIA Board of Directors, we regret to inform you that the association is closing and the annual conference planned for April 2012 in Baltimore, MD has been cancelled.

This has been a very difficult decision that the Board did not take lightly. The association’s finances could no longer sustain the organization to serve the members and support the annual conference. Over the next several weeks, CDIA representatives will be winding down the association and information will be sent regarding recent payments made to the association.

Thank you for your support of CDIA and participation in the association. We encourage you to continue to promote the spirit of CDIA’s mission, values, and advocacy platform as you continue your involvement in other associations, including the Health Story Project (www.healthstory.com) and AHDI (www.ahdionline.org).

Sincerely,

The Clinical Documentation Industry Association

The medical transcription invoice funding specialists asked the president of PRN Funding, Phil Cohen, what his thoughts were on the CDIA’s closing, and this is what he had to say:

First and foremost, on a personal level, I’m saddened by the announcement. I’ve either exhibited or attended the annual CDIA show since 1992! However, I don’t believe that the association’s closing is any indication that the medical transcription (or clinical documentation industry) is hurting. Rather, it just shows how the amount of mergers and acquisitions have been affecting the industry. To date, there are fewer smaller MTSOs in the industry and there are also fewer large players in the industry. For an association to remain active, viable and financially sound, it needs more contributing members, not fewer.

QUESTION: What are your thoughts on CDIA’s closing?

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.

Nuance Communications to buy Transcend Services

Boston.com ran an article that announced how Nuance Communications Inc. has intentions to buy Transcend Services Inc. for $300 million.

Here is a quote from the official press release:

“The acquisition of Transcend will expand the delivery of our innovative voice and Clinical Language Understanding solutions especially to small- and mid-size hospitals,” said Janet Dillione, executive vice president and general manager of Nuance’s Healthcare business. “With Transcend, we will drive change and improvement to the way these hospitals capture and leverage clinical information. The acquisition is a natural extension of Nuance’s existing healthcare business, and will strengthen our solution and services portfolio, as well as enhance our profitability.”

Moreover, the article made mention of how Nuance’s speech recognition technology is incorporated into the latest version of the iPhone from Apple Inc., which calls its voice-recognition function Siri. There’s been much speculation that Siri will be a feature of a new edition of the iPad, Apple’s tablet computer. The new version of the iPad is expected to be unveiled today.

IVANS Study Shows EHR Adoption Growing

IVANS, Inc. a national health information exchange, announced in a press release earlier this week that Electronic Health Records (EHRs) and Electronic Medical Records (EMRs) usage is up. Specifically, the study announced that 42 percent of healthcare providers surveyed currently use either EHRs or EMRs systems, however, 39 percent have no plans yet to implement stage one of meaningful use. (Meaningful Use is defined as a provider using certified EHR technology in ways that can be measured significantly, according to The American Recovery and Reinvestment Act of 2009.)

The press release continued: ‘Stage one of meaningful use sets the baseline for electronic data capture and information sharing. The IVANS study demonstrates it is not enough to simply have an EHR or EMR system in place, but providers must be able to share and use the data in a meaningful manner, or they risk a possible reduction in their Medicare fees or could lose out on financial incentives.’

Additionally, attendees of HIMSS12 at the Venetian Sands Expo Center in Las Vegas, NV, February 20-24, 2012, who visit IVANS Booth #7101 can request a copy of the executive summary.

Click here to read the official press release: IVANS Study Finds EHR Adoption Growing.

AHDI is Now Accepting 2012 Integrity Awards Nominations

In support of AHDI’s professional programs, standards, and best practices, the Association for Healthcare Documentation Integrity conducts an annual awards program to acknowledge the significant contributions of its members and other individuals and organizations that have made an impact on the healthcare documentation sector and medical transcription industry over the previous year.

The following award categories address the areas of contribution that best align with AHDI’s strategic plan, goals, and objectives as an organization.

Member of the Year
Employer of the Year
Educator of the Year
Rising Star Award (Student Essay)
Excellence in Credentialing
Membership Impact
Innovation through Technology
Advocate of the Year

Nominate an individual or company today! Nomination deadline is April 30, 2012. Visit the Integrity Awards web page for complete details and specific nomination forms.

Home Health Care Factoring – Alternative Financing Solution for Agencies

2011 will go down in history as the year the big banks stopped lending to small businesses. On the other hand, 2011 will also be remembered as the year alternative lenders came to the forefront of the small business financing industry. Specifically, Credit Unions, Community Development Financial Institutions (CDFIs), Micro Lenders and Accounts Receivable Factoring Firms all said YES to the majority of their small business financing applications while most larger banks repeatedly said NO.

Although a home health care agency owner could be approved for financing by any of the alternative lenders listed above, the best alternative financing option for them is to work with a home health care factor, and here’s why:

Home Health Care Factoring Creates Positive Cash Flow
Some Medicaid waiver programs can take up to a month to reimburse a home health care agency for its pre-approved non-medical in-home services. This lag in payments makes it difficult for new or growing home health care agencies to be able to meet payroll and other financial obligations. However, when home health agency owners sell their Medicaid receivables to a home health care funding firm, funds can be directly deposited into their bank account within hours. Instead of waiting weeks or months, factoring your home health care business gives business owners immediate access to cash…

Click here to continue reading more reasons why home health care agencies should use a factoring.

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.

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