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.

An Uncertain Future for Medical Transcription?

The medical transcription factoring specialists at PRN Funding came across a piece of research that we believe is important to share with our Medical Transcription Industry readers.

While the medical transcription invoice funding experts at PRN Funding don’t necessarily agree with all of the conclusions of the cover story, it is thought provoking and definitely an issue that all MTSOs are addressing in the present and in the near future.

Click here to read the article: An Uncertain Future.

As an aside, the results of the study referenced in the article are a “must read” for every MTSO.  AHDI provided a good synopsis of Speech Recognition Errors here: Speech Recognition  Error Rate 800% Greater Than Transcribed Dictation.

Nurse Shortage Declines – Study Reveals More Entering the Profession

After hearing countless reports about the worldwide nursing shortage, researchers at RAND Corporation say the trend is reversing. Specifically, the number of women in their early 20s who became registered nurses increased by 62 percent from 2002 to 2009. Combined with the fact that registered nurses today tend to enter training at older ages than a generation ago, these new entering cohorts are projected to become the largest group of nurses ever observed, according to researchers from the RAND Corporation, Vanderbilt University and Dartmouth College.

The study’s lead author and economist, David Auerbach was quoted in the official press announcement: “The spike we’ve seen in young women becoming registered nurses is dramatic. If the trend continues, it will help to ease some of the concerns about future nursing shortages.”

Researchers say there are several reasons that interest in nursing has surged. Several major initiatives were launched to increase interest in nursing careers. Meanwhile, nurse training programs expanded enrollment and created innovative efforts that allows some people to get training on an accelerated schedule.

In addition, the economic downturn and a continued decline in manufacturing jobs has reduced many of the career opportunities that had attracted young people who otherwise might choose nursing.

Click here to read the official announcement: More Young People Are Becoming Nurses; Trend May Help Ease Future Nursing Shortage.

Need Help Selecting a Factoring Firm for You Allied Health Staffing Company?

When it comes to alternative financing methods, invoice funding is an excellent option for allied health staffing companies. Selling their outstanding invoices to a funding company provides the necessary capital for allied health staffing agencies to grow and compete in the marketplace. With that said, there are many funding companies who are able to factor allied health staffing invoices, so choosing one may seem like a daunting task. But it doesn’t have to be that way.

There are five simple comparison categories to consider when choosing an allied health staffing funding company, namely:

  • Pricing
  • Industry Expertise
  • Flexibility
  • Customer Service
  • Stability

Click here to read more How to Choose an Allied Health Staffing Factor.

What is Healthcare Staffing Payroll Factoring?

Healthcare staffing payroll factoring is the conversion of accounts receivable into cash by selling outstanding invoices to a factor at a discount.

It’s a practical option for healthcare staffing agencies that are unable to qualify for traditional bank financing in the early stages of business development. Moreover, healthcare staffing payroll factoring is a great alternative financing option for agencies going through rapid growth. Specifically, healthcare staffing payroll factoring is a financial solution that gives agencies immediate cash to help manage operations more efficiently.

Watch the video to learn more healthcare staffing payroll factoring:

Click here to read some additional key concepts about healthcare staffing payroll factoring.

2011 AHDI Integrity Award Winners Recently Announced

The Association for Healthcare Documentation Integrity (AHDI) honors members who have supported the professional practice standards and goals that AHDI has developed for advancing the profession and positioning the healthcare documentation and medical transcription sectors for continued relevance in the future of healthcare delivery.

The organization announced the winners at the 33rd Annual Convention and Expo in Phoenix, AZ, and they are:

Educator of the Year – Patricia Stettler, CMT, AHDI-F

Advocate of the Year – Sheryl Williams, CMT, AHDI-F

Employer of the Year – Shumaker Transcription Service

Membership Impact Award – Capital Chapter of Austin, TX

Innovation Through Technology – Christine Tyrrell

Hall of Fame: Member of the Year Award – Kathy Muelker

Rising Star Award – Susan Rovito

Congratulations to all of the nominees and winners!

2011 Medical Coding Salary Survey Results Are In

Last month, the American Academy of Professional Coders (AAPC) announced the 2011 results for its annual salary survey of health care professionals on the business side of medicine. Participants included medical coders, medical billers, auditors, and physician practice managers.

Some of the survey’s findings include:

    1. The average salary for a Certified Professional Coder (CPC) was approximately $46,800.
    2. Approximately 62% of respondents said they work primarily in physician-based coding; 10 percent are hospital coders; and 16 percent said they do both types of coding.
    3. Respondents work in every specialty, with the greatest number in family practice (10.3%) and internal medicine (5.7%). Others include emergency medicine (5.2%), general surgery (4.5%), and obstetrics/gynecology (4.3%)—rounding out the top five specialties.
    4. The average wage in 2011 for a Certified Professional Coder (CPC®) was approximately $46,800 (up $1,400 from last year)

      Click here to see all of the 2011 Medical Coding Salary Survey’s results.

      Top Three Common Mistakes to Avoid when Choosing a Nurse Staffing Payroll Factoring Company

      Most entrepreneurs who decide to open a nurse staffing agency are well-versed in the industry, and they have the passion to succeed.  However, when it comes to accounting, and in particular managing cash flow, temporary nurse staffing agency owners often stumble. Entrepreneurs who have a hard time balancing payments coming in with financial obligations going out (i.e. payroll, payroll taxes) should take advantage of working with a payroll factor.

      Now there are hundreds of payroll factoring companies out there competing for your agency’s business, each with their own set of claims and promises to help you achieve your financial goals. With so many different choices out there, how could you possibly narrow down the playing field? Take it from me-It’s much easier to narrow down the selection if you avoid some of the most common mistakes that business owners make when choosing a payroll factor.

      Watch the video below learn about the Top Three Common Mistakes to Avoid When Choosing a Nurse Staffing Payroll Factoring Company:

      Click here to read about the three most common mistakes to avoid when choosing a nurse staffing payroll factor along with a few straightforward tips to help you find a payroll factoring company that best suits your needs.

      What NOT to Do When Picking a Healthcare Staffing Payroll Factoring Firm

      Most entrepreneurs who decide to open a healthcare staffing agency know their industry well, and they have a drive to succeed. However, when it comes to managing cash flow, some agency owners often come up short. Luckily, entrepreneurs who have a hard time managing payments coming in and payments going out (i.e. payroll, payroll taxes) could really benefit from using with a healthcare staffing payroll factor.

      Now there are hundreds of healthcare staffing payroll financing companies out there competing for your staffing agency’s business, each with their own set of claims and promises to help your company become financially sound. With so many different choices out there, what’s the best way to narrow down the playing field? Start with what NOT to do first…

      Click here to find out What NOT to Do When Picking a Healthcare Staffing Payroll Factoring Firm.

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