Q. What type of Receivables do you purchase?
A. All of the accounts receivable that we fund represent accounts receivable which are generated by healthcare service companies also known as "healthcare providers" which would include the following types of prospective healthcare clients: sole practice physicians, group practice physicians, nursing homes, home healthcare companies, rehabilitation/physical therapy companies, chiropractors, hospitals, laboratories and others. We presently do not offer funding to dentists or veterinarians.
The "mainstream" types of accounts receivable that we will consider for funding are accounts receivable which are generated by a healthcare service company and are due from third party payors which include the following payor categories: Medicare, Medicaid, Commercial Insurance, Private Insurance, HMO/PPO, and Managed Care. The average time to collections for most of the Accounts Receivable that we fund range from 90 - 120 days (we will also consider receivables which collect in longer time periods).
We will also consider funding accounts receivable whereby the payors are actually healthcare facilities themselves, such as a nursing home or a hospital, whereby the healthcare provider client is contracting to provide its services to the healthcare facility. Other types of accounts receivable that we will consider funding but are not our "bread and butter" type of receivables include the following: personal injury, no-fault, and worker's compensation.
Q. What type of Receivables don't qualify?
A. We presently do not fund accounts receivable that are owed by patients directly (also known as self-pay). In addition, we do not fund certain types of longer turning worker's compensation, personal injury, or no-fault accounts receivable.
Q. How quickly can you set up funding?
A. In most instances, we can respond and initiate funding within twenty-one days or less from the date we receive your application.
Q. What are the Program's minimum requirements?
A. We typically funds providers with minimum net collections of $50,000 to $10,000,000 per month. We will consider providers that don't fall within these constraints.
Q. How is the rate computed?
A. Four main factors determine the rate:
- Average monthly dollar volume
- Average bill size
- Average number of bills (monthly)
- Average days for receipt of payment
Q. Medicare and Medicaid are not assignable. How can you advance funds against these payor classes?
A. We assist the healthcare provider to simply set up a lockbox account at the host bank. Subsequently, collections are swept from that account to our collection account.
Q. Do you fund on a one-time basis?
A. No. We establish a provider relationship for a minimum of six months.
Q. Can you fund a facility with existing liens?
A. Yes. We have helped a number of its clients resolve various debt burdens, including tax liens and other pre-existing accounts receivable funding arrangements.
Q. What happens if some of the individual bills in a batch don't get paid?
A. The provider verifies the patientās insurance coverage. If the net amount billed does not equal the amount paid, the provider is responsible for the difference.
Q. Do you ever require personal guarantees?
A. Depending on the provider's operating history, a personal guarantee may not be required. Determination regarding the need for a personal guarantee is made during the due diligence process.
Q. How does my facility start the process?
A. Complete ourOn-Line Preliminary Application and submit it to us on-line using our secure server. Or print out the on-line form and fax it to 206-378-1070.
