Nurse Registry Proof of Financial Ability to Operate

If you are thinking about the obtaining a license for your Florida nurse registry, then this article will help you understand about a financial form that is submitted to AHCA along with your healthcare license application when you are seeking to do business as a Florida nurse registry. This form is call the Proof Financial Ability to Operate and is included  in the AHCA nurse registry application. In a nutshell, the licensure process usually requires  the preparation of an extensive application, payment of varying fees, proof of insurance, background checks, the preparation of a Proof of Financial Ability to Operate  form and more. The AHCA website has different  rules for each type of healthcare provider. For instance, there are specific forms for a   Florida nurse registry and therefore you should go to that website. This is a very brief summary and you should review the AHCA website for the application process and required forms.

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What is the Proof of Financial Ability to Operate Form ?

The Proof of Financial Ability to Operate form is not a simple form, its rather complex and is designed  so that the applicant demonstrates to AHCA, among other things,  that the Applicant  has a well thought out financial plan to deliver nurse registry  services  and is knowledgeable in their line of business and the projected operations in the Proof of Financial Ability to Operate  form  is achievable. The Proof of Financial Ability to Operate is  effectively a formalized financial screening process to filter out the non-serious applicant or those that may have not the know-how,  and/or have  the  financial resources (‘the financial ability to operate”) to provide nursing  services to Florida residents.  

As indicated in the Proof of Financial Ability to Operate' s instructions, the applicant  is required to show projected revenue and expenditures, a projected balance sheet, the basis for financing anticipated cash-flow requirements of the provider, and an applicant’s access to contingency financing. Also, Schedule 1 of the Proof of Financial Ability to Operate , requires the applicant to provide  independent evidence of sufficient funds for startup, working capital and contingencies. For an introduction to the Proof of Financial Ability to Operate  please refer to my introductory video and for an understanding answer for the most common question asked about the required funding please refer to my  #1 question video .  

The Proof of Financial Ability to Operate  For a Nurse Registry  Form is not as complex as the regular Proof of Financial Ability to Operate  which is required for all other healthcare providers. The major differences between the Proof of Financial Ability to Operate  as it relates to a  nurse registry as compared to an applicant who is not a nurse registry is as follows:

• One year of projected information is required rather than two year of projected financial information.

• A report letter from a CPA is not required.

• No requirement for the applicant to have total proof of funding equal to at least three times the contingency funding. 

What is your next step ?

The next decision to make, is whether you want to self-prepare the Proof of Financial Ability to Operate or use a CPA or accountant or bookkeeper to prepare the Proof of Financial Ability to Operate. That decision is up to you. If you are good at spreadsheets,  understand  AHCA's  instructions and confident that completion of the form is easy, then a self-prepare the Proof of Financial Ability to Operate may be for you.  Most applicants feel the form is too complex for them. I think the analogy is  similar to buying bedroom furniture from Ikea. Constructing Ikea furniture is  way too complicated for me, and I usually having an expert build the furniture. If you feel the same way about complex financial forms, then  another suggestion, is to use a  bookkeeper or non CPA/accountant to help. A word of caution,  then make sure they have experience in preparing  a Proof of Financial Ability to Operate and know how to prepare and articulate in writing the assumptions.  Assumptions are very important for AHCA to understand your projected business. AHCA's instructions clearly state  "The assumptions an applicant uses are essential in developing a projected set of financial schedules and should be consistent with the applicant's business plan.  All assumptions used in the projections should be contained in accompanying notes to the projections."  

 Summary

The Proof of Financial Ability to Operate  is an important part of your application and it's important for it to be correct. If it's not correct, then you will receive a comment letter from AHCA and have 21 days to correct the Proof of Financial Ability to Operate. If you are unable to correct the Proof of Financial Ability to Operate  within the 21 days, then you will have. to re-apply(check) and pay certain fees again. Therefore, you should consider whether you want to use a CPA who has experience in preparing a Proof of Financial Ability to Operate, which form is part of the AHCA  nurse registry application. Click here to learn more about our services and prices.