What is Home Healthcare Factoring?

Home healthcare factoring is a financial solution tailored specifically for home healthcare companies to effectively manage their cash flow and tackle the challenges posed by delayed payments from private insurance companies, Medicare, and Medicaid. This process involves selling outstanding invoices to a factoring company, which in turn provides immediate cash advances to the home healthcare provider. By leveraging this financial tool, home healthcare companies can meet their operating expenses, pay staff salaries, and invest in growth opportunities without the prolonged wait for customer payments. This ensures that the business remains financially stable and can continue to provide essential services to patients.

Transform Your Louisiana Home Healthcare Receivables into Cash

Home healthcare factoring is a game-changer for healthcare companies grappling with cash flow issues. By converting unpaid invoices into cash, factoring companies offer home healthcare providers the necessary funds to maintain their operations, pay bills, and invest in their business. This financial solution is particularly beneficial for home healthcare companies with long payment cycles, as it enables them to access cash quickly and efficiently. With immediate funds at their disposal, these companies can ensure uninterrupted service delivery and focus on growth and development.

How Does Home Healthcare Factoring Work?

The home healthcare factoring process is straightforward. Here’s how it works:

1. A home healthcare company provides medical services to patients and generates invoices for private insurance companies, Medicare, or Medicaid.
2. The company submits the outstanding invoices to a factoring company.
3. The factoring company reviews the invoices, verifies the creditworthiness of the debtors, and advances a percentage of the invoice value to the home healthcare company.
4. The factoring company collects payment from the debtors and remits the remaining balance to the home healthcare company, minus a factoring fee.

This streamlined process ensures that home healthcare providers receive the funds they need without the hassle of waiting for payments.

Factoring Benefits for Louisiana Home Healthcare Agencies

PRN Funding helps Louisiana home health care companies providing both short-term and long-term in-home care to older patients, patients with disabilities or in need of rehabilitation, and those with ongoing illnesses. We can close the gap between your expenses and payments from HMOs, Medicare, Medicaid, and other government agencies to staff your home health aides. Home health care factoring is simple: send copies of your open invoices for care provided to PRN, along with timesheets or other supporting documentation. We will verify your invoices and advance you between 70 and 90 percent of their face value and wait to collect from your debtors. When the invoice is closed, we will send you the remaining value minus our fee.