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By PRN Funding

Medical Billing Companies Can Increase Their Cash Flow through Factoring 

While the public’s confidence on the economy continues to spiral downward, the demand for health care in this country continues to grow. According to the National Coalition on Health Care, the U.S. spent approximately 17% of its GDP in 2008 on health care costs. That percentage is expected to jump to 20% by 2017.

Doctors’ offices will soon be flooded by 78 million baby boomers as they become eligible for retirement. To handle this sudden influx, physicians will have little time for the day-to-day business operations of their practices and must focus primarily on patient care. As a result, medical billing companies are seeing increased demand for their services.

It Takes Time for Medical Billing Vendors to Get Paid

More and more doctors are outsourcing services such as medical billing and coding to subcontractors, and these companies are reaping the benefits. However, due to the slow pace at which insurance companies approve patient claims, it takes a while for doctors to be paid, and in turn it takes even longer for them to pay their vendors, especially medical billing companies. According to the American Medical Billing Association, it takes an average of 90 days for paper claims to be reimbursed. Granted the advent of an electronic claims system has lowered reimbursement times, it is still problematic for medical billing companies to wait to be paid. 

What is Medical Billing/Coding Vendors Could Get Paid Faster? 

Whether they are start-ups trying to gain a market share of this ever-increasing business, or a veteran company trying to beat the slow-payments system of insurance companies and doctors, a viable and flexible option exists for companies called medical billing factoring.

Medical billing factoring is converting the accounts receivable of a business into cash by selling outstanding invoices to a ‘factor’ for a discount. Accounts receivable factoring gives the medical billing business owner immediate access to cash so that it can manage his/her operations more efficiently.

Instead of waiting months to be paid by doctors’ offices, medical billing entrepreneurs can use factoring services to get cash immediately to pay for their employees and ongoing business expenses. They can also use the money to expand their businesses, such as hiring and training new employees or purchasing new equipment, in a time when the healthcare industry demands these companies more than ever.

PRN FUNDING Provides Immediate Cash Flow!

About PRN Funding:
Philip Cohen is the founder and president of PRN Funding, LLC, which is an extraordinarily focused niche player in the health care services funding market place. Through a process known as factoring, PRN Funding provides medical coding business owners with the financial resources needed to grow and effectively compete in the industry. Contact Philip Cohen at toll-free 866.776.5407, or via email at info@prnfunding.com. Please visit PRN Funding, LLC on the web.