Factoring for Durable Medical Equipment Providers
Quality of life is something hard to define, but a high level of quality is vital for happiness and well-being. As we grow older or face health ailments, sometimes assistance is necessary to improve our quality of life.
Durable medical equipment (DME) providers sell products that do just that—aid in the quality of life for those who need medical help, for as long as they need it. Medical equipment such as hospital beds, wheelchairs, catheters, blood glucose monitors and nebulizers are vital healthcare tools. Without durable medical equipment, many would suffer.
DME Industry Funding Solutions
The DME industry is expected to grow in the coming years due to an aging population and health care reform. However, recent changes to Medicare could negatively affect operations and leave DME providers strapped for cash while waiting for payment. With increased business and longer cash conversion cycles, DME providers may have to turn away new business or seek financing.
Factoring is a smart financing solution. Unfortunately, many medical factoring companies will not take DME clients who bill through commercial insurers, Medicare or Medicaid. Factors tend to stay away from factoring the medical industry because of the complex billing process. The nature of a factoring company’s business is to advance funds based on the value of the client’s invoices—and usually the invoice values are pretty obvious. Since medical companies usually bill through insurance, Medicare or Medicaid, the actual invoice value is less transparent.
A niche medical factor understands the ratio analysis between billable and collectable amounts, as well the various rates throughout the industry. Very few factors specialize in medical equipment industry knowledge, and even less will fund such a deal. While PRN Funding doesn’t specialize in DME, we have various partners who do. Thanks to many years in the business, PRN has developed healthcare factoring arrangements with some of the leading medical factoring companies — contact us today and we can match you with the best medical factoring companies.