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.
Praxsyn Capital has been great a resource to my company. Their team is extremely driven, professional and very compassionate about what they do.
Securing the funding with Praxsyn Capital was key to the success of our company’s aggressive growth plan over the next few years. Thank you for your efforts.
Praxsyn Capital worked very hard on our behalf to make this deal happen. They went above and beyond to really understand our business model and our financial needs.