Running a home healthcare agency in the state of Pennsylvania can come with a lot of baggage. Due to certain laws and regulations, you may be required to bill an insurer like Keystone First. The problem that comes with doing business with some of these insurers is the time they take to pay you. Keystone First can sometimes take up to 28 days to get you the money for the service you provided.
Why is Factoring in PA different?
We understand how difficult it can be to run a home healthcare agency in Pennsylvania. For the most part, pay gaps can occur due to Medicaid. Basically, home healthcare agencies will provide aids to people who are unable to live alone and care for themselves. These aids will take care of the patient, do light house work, and run errands. Here’s where Pennsylvania is unique. Pennsylvania has a waiver program under Medicaid. If the patient is unable to pay out of pocket for the healthcare agency’s services, they are on Medicaid and the service will be paid for by insurers like Keystone First. One of the reasons this is so common is because it is cheaper to provide an in-home aid than it is to put a patient in a nursing home.
How can Invoice Factoring Help?
Unfortunately, working with insurers like Keystone First isn’t always smooth sailing. These organizations often take a long period of time to pay the agency for providing the aid. Keystone First, specifically, can take up to 28 days to pay. Not having the money right away can cause a home healthcare agency to miss payroll, miss payments on any operational expenses, and stunt the overall growth of the agency. Invoice factoring can eliminate all those problems by getting you the cash you need immediately.
How Does Invoice Factoring Work?
In it’s simplest form, invoice factoring is the sale of outstanding invoices. If you can’t afford to wait around for the debtor to pay, an invoice factoring company will purchase the outstanding invoice for up to 90% of it’s value and get you the cash you need immediately. Here’s how simple it is:
- Continue to provide in-home aids to those who need it
- Once the work is complete and Keystone First has been billed, submit the outstanding invoice to PRN Funding for verification/approval
- Once verified, you and PRN Funding will iron out the terms of the deal through a factoring agreement
- Receive instant payments of up to 90% of the invoices value after verification
About Keystone First
Founded in 1985, Keystone First is one of the largest Medicaid managed care health plans in the state of Pennsylvania. Keystone serves over 400,000 Medicaid recipients in Bucks, Chester, Delaware, Montgomery, and Philadelphia county. They specialize in Behavioral healthcare services, Medicare Advantage SNP, Long term services, and Medicaid managed care. Keystone First is headquartered in Philadelphia, PA.