How Does Medical Receivables Factoring Work?

Factoring healthcare receivables is simple: 

• A healthcare vendor sends invoices to a medical provider or a third-party for services rendered or goods provided. 

• The healthcare vendor then submits a copy of those invoices with any supporting documentation (i.e. signed timesheets) to a company that buys accounts receivables. 

• The factoring company purchases those invoices and advances 80-90% of their face value to the healthcare vendor. Funds are typically deposited directly into the vendor’s bank account within 24-48 hours. 

• The factoring company keeps the remaining 10-20% (reserve) as a buffer in case any invoices do not get paid or there are billing errors. 

• The reserve, less the factoring fee, is then released back to the vendor upon receipt of payments from the medical providers. 

Who We Serve

Healthcare Vendors That Bill Directly 

PRN Funding can serve as the medical receivables funding company for vendors who bill their customers directly, including: 

• Medical transcription services 

• Medical supply companies

• Medical staffing agencies 

• Temporary nurse registries 

• Outsourced medical coding companies 

Healthcare Vendors That Pay Third Parties? 

PRN Funding works with Factor Finders, LLC, a leading factoring broker, to pair healthcare vendors with companies that will buy their accounts receivables.  

Examples of healthcare providers we can refer to Factor Finders include private practice physicians, durable medical equipment companies, surgery centers, mental health providers, rehabilitation practices and many more.