Medical Receivables Factoring - Fast Financing for the Healthcare Industry
Talk to Us: 866.886.9466

Medical Receivables Factoring

End the Wait for Reimbursement - Receive Funding Today

Healthcare Factoring vs. Medical Receivables Factoring

Getting to Know Factoring for the Medical Industry

Waiting a long time to be paid is normal for the healthcare industry. If slow-payers are hurting your growth and you could benefit from being paid sooner, we can help with our customized healthcare factoring services.

When it comes to accounts receivable financing for 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. The first type is a vendor sells goods or provides services to the healthcare industry (medical transcription, nurse staffing, etc.) and the second is a provider that bills third-party payers like Medicare, Medicaid and insurance companies. However, both types of healthcare companies make ideal invoice factoring candidates because each routinely bills creditworthy slow-paying customers.

Fast and Simple Working Capital

With medical receivables financing, you’ll have the financial means to hire new staff, open new locations and expand your business however you see fit. There are no limits to the amount of funding you can receive. Factoring is one of the few financing options that has the ability to grow with your business.

Request Your Quote

Get paid faster. Complete the form or call 866-776-5407

  • This field is for validation purposes and should be left unchanged.

Healthcare Factoring

The first variation of medical factoring involves entrepreneurs who own a service-oriented business within the healthcare industry. Specifically, medical transcription servicesmedical supply companies, medical staffing agencies, temporary nurse registriesoutsourced medical coding companies, medical billing services, etc. can all benefit greatly by factoring their invoices. These types of healthcare service providers do not bill third-party payers. Instead, they bill the hospitals or healthcare facilities directly.

PRN Funding has been providing factoring to healthcare service providers for well over a decade.  We work exclusively within the healthcare industry. It’s our specialty and we’d love to assist your growing business.

Factoring for Healthcare Services Works Like This:

  • A healthcare vendor sends invoices to a medical provider (i.e. physicians’ office, medical clinic, hospital, nursing home, etc.) for services rendered or goods provided.
  • The healthcare vendor then submits a copy of those invoices in addition to any supporting documentation (i.e. signed time sheets) to their invoice funding company (PRN Funding, LLC).
  • At which point, PRN Funding purchases those invoices and advances 80-90% of their face value. (Funds are typically deposited directly into the vendor’s bank account within 24-48 hours).
  • PRN Funding will use the remaining 10-20% (reserve) as a buffer in case some of the vendor’s bills do not get paid or if they had billing errors.
  • The reserve, less the factoring fee, is then released back to the vendor upon receipt of payments from the medical providers.

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 getting started.

How to Qualify for Healthcare Invoice Factoring

Nearly any healthcare vendor can qualify, even if you’re just starting up. If you’re billing medical providers, hospitals, nursing homes or other healthcare facilities, we can help.

 

healthcare receivables

Medical Receivables Factoring

On the other hand, medical receivables financing includes a third-party payer (i.e. Medicaid, Medicare or private insurance company) within the medical invoicing process. PRN Funding works with Factor Finders, LLC, a leading factoring broker that pairs healthcare companies with factors that specialize in funding medical deals. By factoring medical receivables, the medical provider is the one who benefits.

The Medical Receivables Financing Process

  • A medical provider submits bills to a third-party payer (i.e. Medicaid/Medicare, HMOs, private insurances, personal injury lien settlements, or worker’s compensation insurances, etc.) for the medical services performed.
  • The medical provider sends a copy of the invoices to their invoice factoring firm.
  • The factor then purchases the medical provider’s invoices and advances up to 80-90% of the expected net collectable value. (Funds are typically deposited directly into the medical provider’s bank account within 24-72 hours).
  • The medical factor uses the remaining 20% (reserve) as a buffer in case some of the provider’s bills do not get paid or if they were billed incorrectly.
  • The reserve, less the factoring fee, is released back to the medical provider after payments are received.

Medical receivables factoring is a great way to bridge the cash flow gap that is oftentimes created by slow payments from insurance carriers and other third-party payers. PRN Funding works with Factor Finders, LLC, a leading factoring broker that pairs healthcare providers with the leading medical factoring companies.

Examples of healthcare providers that benefit from financing medical receivables include private practice physicians, durable medical equipment companies, surgery centers, mental health providers, rehabilitation practices and many more.

How to Qualify for Medical Receivables Financing

To qualify for medical factoring, you should invoice at least $40,000 per month and have at least three months of collections history.

medical physician

Why Choose PRN Funding?

First and foremost, we listen to what your goals are and want to help you succeed. PRN Funding specializes in the healthcare and medical field and can help your company go from good to great. You’ll be set up with an expert account manager that can answer all of your questions and guide you through the entire process. You’ll be set up with an online client account for easy and effortless access to your reports. Why wait any longer to get started? Let us help you regain complete control over your business!

Need a Financial Band-Aid?

We can help with that! Call PRN Funding today @ 866-886-9466

Factor Finders
Talk to Us: 855-322-8671

Free Quote

  • This field is for validation purposes and should be left unchanged.