Alleon Healthcare Capital closed a $12 million medical accounts receivable financing facility with an accountable care organization (ACO).
An ACO is a network of doctors and hospitals that shares financial and medical responsibility for providing coordinated care to patients in hopes of limiting unnecessary spending. When an ACO succeeds in both delivering high-quality care and spending health care dollars more wisely, it will share in the savings it achieves for the Medicare program.
The line of credit was necessary to help the client with its working capital needs and to fund new initiatives as it waits for payment from Medicare.
“We were able to dive into the business model of this client and understand its revenue cycle, which allowed us to get comfortable with the risky nature of an ACO,” Ben Malyar, vice president of business development at Alleon, said. “Additionally, we were glad to partner with a well-run organization whose management is committed to its community.”
Alleon Healthcare Capital, a division of Alleon Capital Partners, is a specialty finance company focused on providing healthcare accounts receivable financing, medical accounts receivable factoring and cash flow solutions to medical providers in the U.S.
