Don’t let the term medical receivable fool you. The rapid growth in home health care is creating opportunity in the factoring industry similar to traditional staffing. According to a (not surprising) 2010 AARP survey, 9 out of 10 older Americans said they’d rather be cared for in their homes than in a nursing home. As the baby boomer generation ages, Medicaid had to evolve to meet the needs of this large demographic. The Affordable Care Act (ACA) introduced a number of new incentives that made it possible for seniors and the developmentally disabled to receive care in the comfort of their homes, rather than moving into nursing home facilities. The ACA created new options and incentives to encourage states to provide home and … [Read more...]
A Nation Divided by Healthcare Options Poses Challenges for Medical Factoring
The expression of a house divided goes back to the beginning of the Common Era and further, if a linguist was to trace it. Sam Houston spoke it most famously in 1850 when he claimed “A nation divided against itself cannot stand” during a debate on the Compromise of 1850. Eight months into full Affordable Care Act coverage, it appears that we are once again a nation divided – this time, into the states that chose to expand Medicaid and the states that did not (including the four that have not decided either way). When factoring healthcare receivables, it is important to be familiar with each state’s policy and what the implications may be for your business. Medicaid Expansion Expansion of Medicaid ties in to the tax credits available to … [Read more...]
Funding for Long-Term Care Facilities
Factoring is a good option for nursing homes, and yet finding the right medical factoring company is often a challenge. A look at the problems and solutions in this article from PRN Funding. “A test of a people is how it behaves toward the old…the affection and care for the old, the incurable, the helpless are the true gold mines of a culture.” -Abraham J. Heschel As birth rates decline in developed countries and the population ages, we must consider how we are going to treat the elderly among us. According to the US Centers for Medicare and Medicaid Services, over 12 million people will need long-term care by 2020; that comes out to about four out of every ten elderly adults entering a nursing home at some point in their lives. At … [Read more...]
A New Factoring Twist on Dental Financing
It’s tough to find factoring companies that will purchase dental financing receivables. The same goes for invoices created from elective medical procedures. This point was highlighted in a recent article we published on Medical Factoring Wears Many Hats. And then I received an email that intrigued me…. “My company offers medical financing to dentists and their patients.” What a great potential for both dentists and factoring brokers to offer additional services. I had to learn more! The end result was this interview with Lenny Leff of InfinaQuest LLC. Your email on buying dental care receivables really caught my interest. What transactions will InfinaQuest consider funding? We purchase both medical provider receivables and … [Read more...]
Sequestration and Business: What Factors Need to Know
Start planning now for the effects of sequestration on factoring and your business. As far as sequestration goes, it feels a little like waiting for the other shoe to drop. Due to the failure of the government to come to a workable agreement on spending reduction, automatic across-the-board cuts were implemented on March 1st. Many government programs and jobs will be impacted, as well as the businesses that work directly and indirectly with them. While exemptions from the cuts do exist, sequestration will have far reaching implications for industries like healthcare as well as … [Read more...]
Medical Factoring Wears Many Hats
Those of us that call ourselves medical factoring companies may in fact be quite different from one anther. Throughout the years certain niches have been serviced by finance companies all of which are called medical factoring but each focuses on dissimilar asset classes. This discussion is designed to identify these different asset classes within the framework of Medical Factoring, and to provide the broker with a clear understanding of how to find the right financial institution for each. Medical Factoring Wears Many Hats First we can begin with an easily understandable type of medical practice called “dentistry.” Dentists bill the typically recognizable insurance carriers that are associated with healthcare plans and payments. … [Read more...]
The Affordable Care Act, Medical Staffing and Factoring
A look at what the the Affordable Care Act means to medical staffing and factoring brokers. Love it or loathe it, the Affordable Care Act (ACA) is a reality for businesses. While portions of the bill have been implemented since its 2010 passage, the major provisions don’t take effect until 2014. This year it is important to be in-the-know about how the ACA will impact your business--either that, or get blindsided by penalties and fines. It is also important to keep in mind, though, that anything that creates turmoil also creates opportunity. … [Read more...]
The World of Medical Factoring and Accounts Receivable Funding
Right from the beginning let me first correct the title of this article. There is no “world” of medical factors, it’s more like a very small neighborhood. Within the finance industry, lenders that are approached with funding opportunities involving healthcare providers as the borrower (or factoring client) tend to retreat and decline these types of applicants. The obvious question is why? … [Read more...]
Making Sense of Medical Factoring
Many factoring brokers steer clear of medical receivables factoring because they think it’s too hard to get a health care deal funded. I’m here to tell you otherwise. All you need is a general understanding of the types of companies that can benefit from medical factoring and a couple of strategic partnerships with the right health care factoring firms. … [Read more...]
Factoring Medical Billing Companies – Frequently Asked Questions
A lot of questions can come up when a business owner starts researching medical billing funding solutions - the idea of selling their invoices to a factor or medical billing funding agency. This article addresses some of the more frequently asked questions … [Read more...]