If you’ve done business with AmeriHealth before, you know how long you could be waiting for payment. Although it varies, AmeriHealth currently, can take up to 28 days to pay a home healthcare agency for providing aids to patients. This can obviously put the agencies in a tough spot when it comes to covering operational expenses. Invoice factoring addresses this issue.
How Can Factoring Help?
In the state of Pennsylvania, there are certain regulations and assistance programs in place that make it especially difficult to run a home healthcare agency. One of those assistance programs being Medicaid. Medicaid helps patients pay for the care they need if they cannot afford it. In the case of home healthcare agencies, if a patient is in need of in-home care, organizations and insurers like AmeriHealth will hire aids from agencies and cover the cost, in line with Medicaid. this happens partly because it is cheaper to hire an in-home aid for a patient than it is to put them in a full-time nursing home. These aids will take care of the patients medical needs, along with doing some light house work and errands.
Once the agency has supplied the aid, they will then have to invoice AmeriHealth for their service. This is where problems generally occur. AmeriHealth can sometimes take up to a month to pay the invoice. Many agencies cannot afford to sit around and wait for the payment. They may need to make payroll for the next week, pay bills, or cover other operational expenses.
Invoice factoring will eliminate that payment gap. Once the service has been provided and an invoice is generated, the agency can send the invoice to PRN Funding for approval and receive a cash advance of up to 90% of the invoices value. Then once the invoice is approved and the agency receives it’s cash, AmeriHealth will then be obligated to pay PRN Funding. At surface level, invoice factoring is the process of selling your outstanding invoices.
Invoice Factoring Pros And Cons
Improved cash flow
Bad credit? No credit, No Problem
Fees may vary
AmeriHealth is a Medicaid managed care heath plan headquartered in Harrisburg, Pennsylvania. AmeriHealth Caritas Pennsylvania is member of the parent company, AmeriHealth Caritas, that serves Medicaid recipients in multiple states in the U.S. AmeriHealth Caritas Pennsylvania serves almost 200,000 Medicaid recipients, in 2 regions and over 20 counties in the state of Pennsylvania. They offer basic medical assistance along with special programs for Caritas members.