Busting Healthcare Staffing Factoring Myths

There are a lot of rumors that factoring is not an ideal payroll funding solution for healthcare staffing business owners and entrepreneurs. However, many of those rumors are a result of misinformation and poor staffing factoring research methods. This article will help debunk some of the more common factoring myths so that staffing business owners can make an educated decision when it comes time to finding the appropriate funding solution for their cash flow problems.Healthcare Staffing Factoring Myth #1: I’m nervous to factor my healthcare staffing invoices because my customers are not familiar with it.Reality: Factoring has been around for over 4,000 years. In fact, many big name companies have benefited from it, including: 3M Corporation, Best Buy, American Express Company, Motorola Inc., CVS Corporation, and Foot Locker. In addition, factoring is very prominent in the world of staffing because medical facilities routinely take weeks or months to pay their staffing vendors. In most cases, in order for a staffing business owner to utilize a factoring firm, the accounts payable clerk who handles the payables just needs to change the remittance address.Healthcare Staffing Factoring Myth #2: Invoice Funding is an expensive financing option.Reality: It’s important to consider the fact that a factoring fee is not the same thing as an annualized interest rate. For example, if a factoring firm charges a staffing agency owner 3% per month, it cannot simply be translated into 36% APR. Rather, a factoring firm’s fees stop the day an invoice is paid. Staffing firms do not typically wait 12 months to receive payment on an invoice, so the fee is not nearly as large as one would perceive it to be.Healthcare Staffing Factoring Myth #3: Factoring requires a long-term commitment. Reality: Unlike a bank loan, most factoring companies who work with staffing agencies do not require a fixed-term financing commitment. You choose when, who, how much and how long to factor your invoices.Healthcare Staffing Factoring Myth #4: With factoring, I will lose control over my accounts.Reality: Selling staffing invoices makes it easy for business owners to manage their invoices. Most factoring firms offer their clients access to financial reports weekly or daily. In fact, there are many factors who grant access to a secure online reporting system where staffing entrepreneurs can review purchased accounts and collections in real time via a secure Internet connection.Healthcare Staffing Factoring Myth #5: The hospitals and nursing homes will think my agency has cash flow problems.Reality: There are many businesses who use factoring and many medical facilities are already familiar with healthcare staffing factoring. Once alerted of the change in remittance address, healthcare facilities simply view the factor as the agency’s new accounts receivable department.Healthcare Staffing Factoring Myth #6: The hospitals and nursing homes where I staff will be bothered by frequent collection calls.Reality: A factoring firm will initially contact an agency’s customer to verify that the invoices are valid. If there is a problem and the staffing factor cannot successfully collect on the invoices, the factor will contact the agency owner to discuss the issue.Healthcare Staffing Factoring Myth #7: The staffing business model is too complicated for a factoring firm to understand.Reality: There are many accounts receivable factoring firms that are familiar with this intricacies involved with the staffing industry. As a result of their industry expertise, these factoring firms have specialized funding programs specifically geared towards staffing agencies.Certainly, reviewing these seven common myths will help staffing agency owners who are trying to piece together the facts about invoice factoring. Hopefully, this article has proven that there are two-sides to every story. You can learn more about managing factoring fears, all it takes is a little research to get started!

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Medical Transcription Outsourcing – Right Solution For Healthcare Facilities With Expansion Plans

In today’s world change is the one thing, which is constant. Change has never been more relevant than when it comes to healthcare. A healthcare facility has to cope up with the latest developments in healthcare, all the while stretching their budgets to the limit. The latest equipment, the latest techniques, adding on new specialties to the existing practice, all this can put a strain on limited resources.As the scope of operations of a healthcare facility keep expanding their back office requirements like medical transcription and medical billing needs also expand accordingly. As this happens the first reaction of the healthcare facility is to add on more staff to cope up with increasing transcription needs or alternately outsource the overflow of transcription requirements to independent contractors or to a service provider or a combination of all three.This move provides a solution albeit temporarily. But as time passes there could be serious discrepancies in terms of the following:Quality of reports: The accuracy level or the quality of the finished transcripts depends totally on the quality of people working on it. Use of varied sources to cope with medical transcription needs can dilute the quality control. This could have an impact on the quality of healthcare.
Turnaround time: Having varied turnaround time would mean that all the data needed to make an informed decision would not be available to the healthcare professional at the right time, which can affect the timeliness of the care imparted.
Cost per line of transcription: Having transcription done by various sources would mean that the cost per line of transcription would increase.
Systems/media used for transcription: The technology used for transcribing would be diverse given the different sources, all these would mean additional costs for integration with the healthcare facility systems.
Serious issues with HIPAA/HITECH compliance: HIPAA/HITECH compliance would be difficult to monitor given the numerous entities involved in the process.
Delays in processing for the accounts receivable cycle: Medical transcription is the first stage of the accounts receivable cycle; delay in this would mean delays in the rest of the reimbursement process.
Time spent coordinating various sources of medical transcription increases: Report distribution and signing of finished transcripts would be delayed due to the various sources of work.
Manpower dealing with providers would increase: The healthcare facility would have to appoint extra people to coordinate the varied sources of transcription to ensure a smooth workflow.All these factors can have a serious impact on both the quality of healthcare and the bottom-line of the healthcare facility.What is the most economical and efficient solution to cope with expanding needs of a healthcare facility? Outsourcing medical transcription needs to an outsourced service provider would provide a one-stop solution for all the transcription needs of a healthcare facility no matter what their expansion plans.How can the service provider provide a one-stop solution to the transcription needs of a healthcare facility?The service provider can provide superior solutions by having:
Right people
Right process
Right technologyBy having the right people, right processes and right technology in place the outsourced service provider can offer:
Service at the right price – at least 40% lower than current costs incurred by the healthcare facility.
Accuracy of above 99%
Turnaround time of 24 hours with an option of 4-12 hours for STAT reports.
HIPAA and HITECH compliant transcription
Fair billing methods to ensure that cost per line of transcription is understood clearly.
Systems that integrate with that of the healthcare facility without any additional investment on their part.

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