Phoenix, AZ – The Association for Healthcare Documentation Integrity (AHDI)is holding its Annual Convention and Expo at the JW Marriott Desert Ridge August 17-21, and PRN Funding, LLC will be in booth #406.
MTSOs and business owners interested in learning about an alternative form of financing can meet with the owner of PRN Funding, Phil Cohen, and Account Specialist, Taylor Materna, during exhibit hours.
In addition, AHDI attendees are encouraged to stop by PRN Funding’s booth to get a sticker as part of the Wheel of Prizes game. After visiting with participating exhibitors and collecting stickers, attendees can turn in their completed cards for a chance to spin the Wheel of Prizes.
Just in case our medical transcription readers missed it, the July issue of Plexus Magazine had a little write-up about SRT editing, entitled: Eight Things to Love about SRT Editing. The medical transcription factoring specialists at The Factoring Blog re-printed them below:
The natural language processors is sometimes better at deciphering accents compared to the human ear. As long as sound quality is god, ESL dictators are usually easier to edit compared the typing.
For slower typists, high gains in production through editing may be possible.
With practice, most transcriptionists can becomes successful medical editors within three months.
Back-end editing can keep costs to the client low, and the client will less likely consider alternative means of documentation thatseek to remove transcriptionists and editors form the equation.
Less wear and tear ib tge hands, wrists, and shoulders; this is further minimized with utilizing a word expander to do the editing.
Editing can actually be a wonderful learning tool. Often speech recognition already knows a term the MT has not yet been exposed to. Research can then confirm if SR was right. It can also help the MT learn a lot of the ESL accents. Seeing the typed word and comparing it to the voice file can help MTs learn how specific accents are likely to pronounce certain words.
Transcribing is limited by how fast your fingers can move. There is only so fast one will ever get transcribing once the expander is being fully utilized. With SR, you can teach your expander to do more of the work.
For some it is easier to catch SRs mistake’s than it is to catch your own. After a point, you can almost pick out the errors at a glance. Over time your brain becomes trained to pick these things out of the document quickly.
Rightfully so, Tracy defined the marketing lure of Groupon as “marketing with no upfront fees.” For cash-strapped business owners looking to make more sales, free advertising sounds like a good deal–That is until you break down the numbers:
50% discount to customer
25% fee to deal provider
25% net to business owner
In essence, the business owner only makes 25% AND they have to wait to get their portion, in installments, over time.Tracy outline a simple example, where 1/3 of the business owner’s profits was paid in 5 days, 1/3 in 30 days and the balance within 60 days:
$100,000
-$50,000 discount
-$25,000 fees
=$25,000 received by business owner (33% or $8,333 immediate advance, with the remaining $16,667 paid out over 60 days.)
Then Tracy used the same scenario as though the business owner were factoring:
$100,000
-$5000 factoring fee (average 5%)
=$95,000 received by business owner (80% advance or $ 80,000 upfront, with the balance less the fees received once debtor pays in full).
Established, But Wanting to Grow…
Paula’s medical transcription business was five years old and was doing well. Her medical transcription service provided transcription on a regular basis for a number of community hospitals, clinics and physician offices. Things were running smoothly, but Paula was not satisfied. She really wanted to see her medical transcription service grow. She had a number of ideas on how she could expand her business and she knew of some definite growth opportunities in the healthcare industry. Her first plan was to attend a trade show for health information managers that would hopefully land her some new and bigger clients.
Medical Transcription In Demand…
The trade show turned out to be a huge success. Paula had a list of hospitals that were in need of a reliable and professional medical transcription service. Paula was eager to begin servicing these new large clients, but in order to meet the demands of these hospitals her business would need a major overhaul. She would have to increase the size of the dictation system, have interfaces built and recruit and train new transcriptionists. She was going to incur large start-up costs in order to prepare for the new clients, and she was also going to see a tremendous increase in her on-going expenses, especially payroll. In the meantime, it would be many weeks before any of the new clients would pay for her company’s medical transcription services.
Supplying the Demand…
Paula wondered how she would get the money that she needed in order to accommodate the new clients and expand her medical transcription business. She first asked her bank for the working capital that she needed, but she could not meet their requirements. The bank instead recommended that she call a medical transcription accounts receivable factor to provide her with the instant cash relief that she needed. Paula searched the Internet and found PRN Funding, LLC, an accounts receivable factoring company that specializes in funding businesses in the medical transcription industry. PRN Funding looked like a perfect match for Paula’s medical transcription business and she was hoping that they would have the solution for her cash flow problems.
Extend Financing to a Growing Business Without a Loan…
Paula immediately completed an online factoring application and electronically submitted it to PRN Funding via the Internet. She received a phone call later that same day from one of PRN Funding’s account specialists, who walked her through the factoring process. She learned how factoring her medical transcription accounts receivable would provide her with the working capital she needed to expand her medical transcription service.
Factoring Helps an Established Business Grow…
Paula was thrilled to learn that she could factor as few as one or as many as all of her clients and that there were no minimum amounts to factor. With no binding term contracts, she could factor as long as she needed without having to commit to a specific length of time. All she had to do was invoice her clients as usual and then submit the invoices to PRN Funding. PRN Funding would verify and purchase the invoices and provide Paula’s business with a cash advance within hours. PRN Funding provided the answer that Paula needed to expand her medical transcription business and to service the new clients. By factoring her medical transcription invoices, Paula was able to grow her MT business to a whole new level.
In an effort to combat the affects of the crumbling economy, service-oriented businesses have been getting creative with new ways to generate money.
Unfortunately for consumers, that creativity often translates into price hikes, additional fees, reduced services or cut backs on productivity. But does it have to be that way?
Take a look at the airline industry. When fuel prices soared last summer, airline giants started charging extra for what were once common courtesy services in addition to the original ticket price. They started with charging for snacks and drinks and then quickly moved onto charging checked bag fees, assigned seat fees, fuel surcharges, curbside check-in fees, etc.
Once the industry giants established that this additional fee policy was going to be part of the standard flight-booking procedures, it didn’t take long for all of the airlines to jump on the “Hidden Fee Bandwagon.” From a customer’s perspective, it seemed as though the airline industry as a whole started seeing dollar signs instead of thinking about its customers needs. Then along came Southwest Airlines with its clear thinking and its “No Fee Policy.”
In some ways, the accounts receivable factoring industry can appear to be a lot like the airlines industry. Both operate world-wide, both industries should be service-oriented, and both industries are notorious for tacking on extra fees in addition to the basic fee. Much like Southwest Airlines, the factoring industry has a handful of healthcare factoring companies who do not charge extra fees in addition to the base fee. This article will discuss three areas where factoring firms might insert hidden fees.
First and foremost, a business owner needs to understand the basics of how a factor charges for its factoring services. It’s important to note that healthcare factoring firms do not loan money; rather, they purchase a company’s invoices at a discounted rate. This discount rate can be a one-time flat fee, or it can vary depending on how long the factor owns the invoice.
In general, discount rates can be affected by a number of things, including the contractual commitment, the average monthly purchase volumes, the average size of the invoices sold, the number of account debtors (customers) that will be factored and the credit quality of those debtors. Variations in each of these will lead to potentially substantial changes in the fee structure. In many cases, factoring firms will have extra fees in addition to their factoring discount fee. More often than not, these “hidden fees” are disguised as set-up fees, administrative fees and penalty fees.
Set-up Fees
There are some factoring companies that start charging fees as soon as a potential client applies for healthcare factoring services. Set-up fees range from a minimal application fee of $25 to a hefty origination fee of $500. In some cases, factors will add in individual fees for due diligence procedures (i.e. running credit and background checks) and legal documentation fees (i.e. assembling legal documents and filing liens). When all is said and done, a new factoring prospect could be $1,000 out of pocket before knowing if he/she has been approved for funding.
When business owners are comparing and contrasting factoring companies, it’s important to inquire whether the factor charges specific set-up fees. Sometimes, the factor will say yes, and sometimes it will say no. It’s up to the business owner to decide whether or not the factoring services outweigh the start-up costs before moving forward.
Administrative Fees
In addition to application, origination and due diligence fees, some factoring firms charge their clients for the time it takes to compile and ship legal documents, billing for postage, long-distance phone calls, photocopying documents and/or time spent on the computer while assisting their clients. There are also fees associated with funding procedures. Most factors will institute set prices for a same-day wire or an overnight transfer of funds.
When a business owner is contemplating the notion of factoring his/her receivables, it’s important to factor any administrative costs into the equation. Without doing so, a business owner could wind up paying a lot more than he/she had initially anticipated.
Penalty Fees
The last way a factoring firm could potentially squeeze in some additional “hidden fees” is when it assigns fees for various “penalties.” Under this umbrella of penalty fees, a factoring firm could designate fees for misdirected payments, early termination of a contract, aged invoices, expedited funding (within 24 hours or less), not hitting a monthly minimum factoring requirement or going over the maximum allowable factoring amount. In addition, a healthcare factoring firm could also penalize its client by holding onto the funds within the reserve account (cash that is owed back to the client once payments have been received).
When choosing an accounts receivable factoring company, business owners should take the time to read all of the terms and conditions before signing on the dotted line. Entrepreneurs should not be afraid to dig deep into the factoring contract and ask a question when something is unclear. Otherwise, those hidden fees hidden fees will reveal themselves at a point where it’s too late to re-negotiate the terms.
So in conclusion, it does appear that the factoring industry is similar to the airlines industry in that players in both are notorious for charging “extra fees.” The plus side to this realization, however, is that both industries also have some players who stand firm in their “No Extra Fee Policy.” The bottom line-much like when shopping for the best airline deal, it’s extremely important to look at the all-inclusive price, including possibly extra fees, before agreeing to do business with an accounts receivable factoring company.
The medical transcription invoice funding specialists recently stumbled upon an “Open Letter Series” written by AHDI’s 2011 Director, Kristen Hagen, discussing the role of medical scribes in the healthcare documentation industry.
Even though, Ms. Hagen wrote the Let’s Talk About…Medical Scribes Open Letter in February, the information within it is still very relevant for our medical transcription factoring blog readers. Here are some tidbits of information we wanted to highlight:
What is the background of a medical scribe?
“Today scribes are commonly referred to as Clinical Information Managers. The primary function of a scribe is the creation and maintenance of the patient’s medical record, which is created under the supervision of the attending physician. The scribe documents the patient’s history and story through direct observation of the physician’s interaction with the patient as well as the procedures performed, the results of the laboratory studies, and the other ancillary information gathered at the point of care…The demand has traditionally been filled with eager pre-medical students, learning first-hand about the workflow patterns and patient care they will deliver in the future.”
What are the skill set requirements and training required to become a medical scribe?
“Medical scribes may be trained on site or through affordable online distance education programs. Skill sets include strong English grammar, a compelling interest in healthcare and patient improvement, a strong desire to work in a clinical setting, superior analytical and resource skills, understanding and training in enabling technologies…an understanding of information workflow, attention to detail, keen listening skills, and strong multi-tasking abilities…Scribes are also expected to be well-versed in HIPAA and regulatory compliance, and like MTs, scribes have a steep learning curve, with clinical shadowing required in the post training phase.”
Could this be a stepping stone for medical transcriptionists and others in the medical transcription field? Is this an alternate career path for medical transcriptionists?
“There are similarities and distinct differences between medical transcriptionist and medical scribes, as are there in comparing these roles with any other health information management role…Healthcare will need professionals who have flexible resume of contributory skills applicable to an EHR-centric documentation setting. Scribing is a potential alternate documentation setting for medical transcriptionists.”
Ms. Hagen’s two-cents:
“I can tell you that transcribing and scribing are neither competing nor complementary. They are quite unique, with some overlapping fundamental training but with divergent connection to technology and practical application. They are simply two of the many current and evolving roles available for those who seek career in the documentation of healthcare encounters.”
Q: What do you think about the medical scribe industry?
According to CDIA’s web site, those interested in viewing the interactive conference schedule can click on the session titles on the page to read the session summary and speaker bio.
(NOTE: Not all sessions are currently clickable, as CDIA is still collecting information from speakers and finalizing the schedule. Please check back frequently for updates.)
According to a brief write-up in March’s issue of Plexus, MTIA will once again offer a morning of education sessions that are specifically aimed at practicing MTs on Saturday, April 16, in Charlotte, NC. Available for a special price, medical transcriptionist attendees will learn:
ICD-10 Implementation
Revenue Cycle Process
Meaningful Use
MTs can choose between two different registration options:
MT Package #1 – Saturday morning classes only 9am-1pm; and
MT Package #2 – Saturday morning and the closing reception of the MTIA Conference scheduled for April 15 from 5:30-6:30pm.
Last week, Transcend Services, Inc. announced that is was entering negotiations to acquire DTS America, Inc. The transaction is expected to close next month.
Transcend Services, Inc. is a Nashville, TN-based medical transcription company that serves approximately 30 hospitals, plus a number of clinics and surgery centers in 13 different states.
Andrew Miller, Jr., CEO of DTS America was quoted in the press release saying: “In order to continue our ambitious growth plans, DTS needed to find a larger partner that both recognized the value of our employees and was committed to providing excellent customer service. I believe Transcend is the best partner for our employees and clients and I am excited by the capabilities that each of us brings the other.”
The CDIA made the official announcement on February 21 at a private press briefing and reception at the HIMMS11 Annual Conference and Exhibition. The name change reflects the fact that the transcription profession is evolving into an editing funding with the advent of EMRs.
Under its new name, the CDIA will continue to promote the value of clinical narrative in capturing information-rich health stories that can be tagged and re-purposed to meet criteria for use and distribution in the EHR.
