Our Process

Apply

Fill out the application here or call
(561) 323-7338 to get started

Get Pre-Approved

We will request some basic information (AR report, collection history, contracts) & we will provide you with a pre-authorization.

Get Funded

Funding can occur in as little as 3 business days. You will digitally sign documents & we will wire the funds directly to your bank account.

How Does Factoring Work?

Praxsyn provides advances on portfolios of medical claims which are carefully selected through a stringent prequalification process. Each case is individually underwritten using our rigorous proprietary process. Only those cases that meet our strict compliance requirements are included in the investment fund. After contract, claims are imported into our proprietary Billing/Claims Management Software, allowing transparent independent visibility to the client, as well as allowing tracking and control of the collateral. The true strength of Praxsyn lies within this proprietary system and process, as follows:

Pre-Acquisition: Cursory “portfolio” attributes being sold by the practice are procured and reviewed. Following procurement, initial compliance documents are exchanged (Business Associates Agreement “BAA”). Due-diligence is then performed on the practice, and said provider is assigned weighted scoring number based on an algorithm for assessing the strength of the practice. Further due diligence is then performed on each client-patient in the portfolio, and similarly assigned a weighted scoring number. Following the diligence, a site inspection is conducted and a Master purchase agreement is established signifying the diligence completion

Documentation: We maintain quality controls prior to on-boarding of the portfolio purchases including classifying relevant patient documents, including patient information/medical history, and the BAA requirements for sharing information relative to HIPAA compliance.

On-Boarding Process: Once the final purchase price is negotiated and accepted by the Provider the following general steps are performed: Lockbox set up for payments using enhanced amortization schedules and disbursements, migration of patient information to HIPAA compliant  secure servers, establishment of client/patient account files, audit trail generated, as well as requisite management aging reports.

Final Review: If the “portfolio” meets the Company’s minimum quality standards (above), the Company will run a complex set of algorithms based on weighted scoring matrices to determine a “quality scoring” grading system. The final purchase price will be offered based on this out-putted value. Grading includes items such as the quality of the documentation provided, the practice’s historical payment history, the quality of the procedures performed, etc.

Ongoing: The following are ongoing services provided by Praxsyn: recordation of payments and settlements sent to Company lockbox and “relieving” of payables and receivables, monitoring of patient accounts against Letters of Protection and Assignment of Benefits, etc., account reconciliation and “true-ups” with connected parties, record keeping of files and storage for forensic purposes as well as responding to legal document production and requests, final distribution of payments and true-ups, portfolio review and assessment.

About Praxsyn Capital At Praxsyn, we fund personal injury receivables, including Letters of Protection and third-party automobile insurance claims throughout the United States.

Praxsyn Capital, a division of Praxsyn Corporation, is a publicly traded specialty finance company focused on providing cash flow solutions and medical receivables financing to healthcare providers in the US that focus on personal injury. The financing products we offer allow our clients to stabilize cash flow, hire new staff, take on more patients, open new medical offices and focus on the business of being a physician. At Praxsyn, our seasoned team of revenue cycle, medical billing and collections experts are there to evaluate your claims in a confidential and expeditious manner, and provide much needed capital so that you can focus on providing quality healthcare.

Apply Now! We fund any medical provider in the U.S. that bills third-party insurance carriers

Frequently Asked Questions If you would like to discuss your questions with us directly, give us a call at (561) 323-7338

What types of providers do you fund?

We fund any healthcare provider that “plays” in the personal injury space, including, but not limited to: orthopedics, neurology, pain management, MRI.

Why is medical receivable/personal injury factoring essential to a provider?

To alleviate this cash flow constraint, most providers turn to their local banks for working capital loans. However, most of these banks have limits, strict requirements and hindrances that make it difficult to obtain these loans. Banks do not want to lend against these kinds of receivables because the claims still need to be processed and adjudicated through the established claims procedures. Praxsyn fills this gap by providing the necessary working capital through medical receivable funding, and has the ability, depending on jurisdiction to purchase and own these receivables as well.

Once I have been approved, how soon do I get paid?

Once we have vetted all the information, the data goes into underwriting. The typical turn-around time is 7-14 days. For example, once all the data is gathered on a Wednesday, funding will occur the following Friday.

What type of pre-acquisition review occurs?

Following procurement, initial compliance documents are exchanged (Business Associates Agreement “BAA”). Due-diligence is then performed on the practice, and said provider is assigned a weighted scoring number based on an algorithm for assessing the strength of the practice. Further due diligence is then performed on each client-patient in the portfolio, and similarly assigned a weighted scoring number. Following the diligence, a site inspection is conducted and a Master purchase agreement is established signifying the diligence completion.

Do you fund portfolios consisting of LOPs, insurance claims or both?

We fund either. Under either scenario, we utilize our proprietary billing and collection systems to insure billing, collections and tracking.

Will my credit score effect my ability to fund my portfolio?

Praxsyn primarily focuses on the ability to collect the account receivable being purchased rather than the credit worthiness of the healthcare provider. This makes factoring a suitable transaction for many growing medical practices when traditional medical financing or commercial lending proves impractical or unavailable.

What is recourse vs. non-recourse invoice factoring?

“Recourse” factoring places this risk of non-collection on the provider, who typically agrees in such cases to buy back any uncollected receivables from the factor. “Non-recourse” factoring, on the other hand, places the risk of non-collection on the factor itself, who is responsible for carrying 100 percent of the risk that some or all of the purchased invoices may not be collectable. Although both methods may be used depending on the circumstances, non-recourse factoring is often a more attractive option for healthcare providers who are willing to sell their invoices for a discount in exchange for the certainty of knowing that they bear no risk for unpaid accounts. At Praxsyn, we operate a “no-recourse” model, and at times a hybrid model.

What is the basis for the final valuation?

If the “portfolio” meets the Company’s minimum quality standards, the Company will run a complex set of algorithms based on weighted scoring matrices to determine a “quality scoring” grading system. The final purchase price will be offered based on this out-putted value. Grading includes items such as the quality of the documentation provided, the practice’s historical payment history, the quality of the procedures performed, etc.
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