The Wall Street Journal reported today that increased strikes at hospitals and a shortage of nurses has resulted in a supply crunch. Some, but not all, of this nurse shortage has been alleviated by the staffing industry – in particular those agencies which specialize in replacement and travel nurses. To attract more nurses to their agencies, many healthcare staffing firms are wooing nurses with special bonuses and premium wages.
Like many staffing firms, the agencies focused on nurses will be faced with a working capital challenge. The nurses and other healthcare workers will want to be paid every week. The clients (the hospitals) will want to pay on a much less frequent basis. Collection from the hospitals may occur as little as once a month.
The healthcare staffing industry is one of the biggest users of factoring as a way to accelerate cash flow and overcome working capital challenges. Within the last few months, I have successfully arranged a factoring facility for two firms who provide travel nurses to the healthcare industry. As a result, each firm is focused on growing their company rather than making payroll.
Regardless of your industry, if you’re interested in learning more about using factoring to improve your cash flow, please give me a call!
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Related Tags: Wall Street Journal, staffing, healthcare, travel nurses, factoring, accounts receivable, bank loans, working capital, cash flow
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