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There are limited financing resources available to today’s healthcare providers. The large number of claims billed to insurance and other third party payors are taking longer to make payments as well as reducing the same.
WJM 7 represents a provider of working capital and financing to health care providers on a nationwide basis. The provider has borrowers in 47 states. Their portfolio consists of hospitals, nursing homes, home health care agencies, hospices, behavior modification, durable medical equipment suppliers, home medical equipment suppliers, MRI facilities, sleep diagnostic centers and medical groups.
Why A/R Financing?
Receivables are your greatest asset on the balance sheet. The sale of receivables provides "off balance sheet" funding. Cash replaces accounts receivables, which are normally valued by traditional financial institutions at much less than their true worth. The sale of receivables, unlike a loan, causes no additional debt to you and your balance sheet. Medical receivable financing is a means by which the healthcare provider is granted an asset-based credit line that is based on the net realized value for his/her billings to third-party payors.
Mainstream Accounts Receivable
The "mainstream" types of accounts receivable that the provider 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 - 180 days (we will also consider receivables which collect in longer time periods).
Accounts Receivable Which Are Non-Mainstream, But Are Acceptable
The provider 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 will be considered for funding but are not our "bread and butter" type of receivables include the following: personal injury, no-fault, and worker's compensation.
Accounts Receivable That Are Not Acceptable
The provider does not fund accounts receivable that are owed by patients directly (also known as self-pay). In addition, the provider does not fund certain types of longer turning worker's compensation, personal injury, or no-fault accounts receivable.
What's the next step?
We will help you fill out the necessary forms in order to begin the application process. That’s It.
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