The Challenge

Healthcare Financing: A significant opportunity for improvement

Healthcare in America is big business, close to 18% of the US GDP, and the capital financing of this near $3 trillion dollar industry, more specifically hospitals and their clinics, is inefficient. The hospital "revenue cycle", as it is termed, is plagued by frictions created by business office dependence on aged and imperfect information, and costly claim processing mistakes.

Hospitals nationally average 50 days or more waiting to be paid on their accounts receivable, (A/R), and net less than half what they charge.

 

Provider A/R held in lockdown

To finance operations and capital projects many hospitals and health systems utilize less than ideal securities issuance methods secured by virtually all of their A/R.

Typically with healthcare capital financing there is an inverse correlation between lower bank rates and higher internal management costs, “the hassle factor".

 

 

The Hassle Factor

These frictions unfortunately leave each economic system with needs it cannot fulfill and assets it cannot effectively utilize.

Banks unable to lend

Post-crisis regulations have left the financial industry with excess capital supply and an inability to lend. 

Couple that with the complex and time consuming healthcare claims adjudication process, and the end result is over-collateralization by the financial industry that unnecessarily locks up, most if not all of a provider’s A/R.

So how do we remove the friction within healthcare finance and create better opportunities for both parties?

See The HealthcareTTU Solution

Now is the perfect time to act

  • National Health Expenditures

    18% of GDP and climbing

  • Uncompensated Care

    The percentage continues to grow

  • Medical Reimbursement

    Facing downward pressures

  • Higher Operating Costs

    due to salaries, med/surg, etc.

  • Interest Rate

    Uncertainty threatens the cost of financing