Medical Receivables Factoring vs. Healthcare Factoring Video

I often get asked what’s the difference between what PRN Funding does – healthcare vendor factoring – and what another medical factoring company does, so today I’d like to explain the differences between healthcare vendor factoring, or healthcare factoring, and third-party med receivable factoring. So, what PRN Funding does is factor the receivables of vendors who sell to medical providers Basically, these vendors are owned by a business owner who has some sort of service-oriented business within the healthcare industry, and they’re billing a medical provider directly – there’s no third party payer involved. Examples of these healthcare vendors include medical transcription companies, nurse staffing agencies, allied health staffing agencies, outsourced medical billing or medical coding companies, or even medical supply companies – all of these are examples of healthcare vendors that PRN Funding factors on a daily basis. And what happens is these entrepreneurs bill medical providers like hospitals, nursing home, physicians’ offices, and it takes these providers weeks or months to pay back the vendors for their services. So PRN Funding comes in and purchases the invoices, and advances cash right away, so these healthcare vendors don’t have to wait to be paid. Now on the other hand, there’s 3rd party medical receivable factoring, or just called medical factoring, and this is when the 3rd party payer is introduced into the invoicing process. Basically a medical provider is going to be billing a third party for the services that they provide in their office or facility. These third party payers are often Medicaid, Medicare, or insurance carriers. And it takes these third party payers months to reimburse the medical providers for the services that they underwent in their offices, so medical factoring is a way for medical providers to get cash quickly instead of waiting a long time for insurance companies, Medicaid, Medicare to reimburse them. Now, even though PRN Funding doesn’t specialize in medical factoring, we’ve developed a number of referral relationships with very credible medical factors, so it’s possible that if what you are really looking for is medical factoring, we can find a good factoring company to refer you to. For more information, please give me a call at 866-766-5407 – again, 866-766-5407.