Daily News: October 15, 2015

Alleon Healthcare Capital Closes Three A/R Facilities

Specialty finance company Alleon Healthcare Capital closed three new medical receivables financing facilities totaling $2.25 million.

The facilities were to three home healthcare providers. These providers operate in different states and within different home healthcare specialties. One is a pediatric home healthcare provider in Texas. The second is a skilled nursing home healthcare provider in Indiana. And the third is a specialty care home healthcare provider in Maine focused on people with disabilities.

All three financing facilities were structured with the provider’s accounts receivable as the main collateral. The facilities now allow these providers to receive payments within 24 hours of claim submission and drastically help with revenue cycle management.

Ben Rutkevitz, who heads Alleon’s origination department said, “We’ve noticed an increase in demand from home healthcare providers, both skilled and non-skilled. The reason for this is that home healthcare is labor intensive and requires an outlay of cash for fixed expenses so any delay in payments from insurance carriers creates a cash crunch. Additionally, any growing provider needs a working capital line secured by accounts receivable to facilitate the growth.”