Alleon Healthcare Capital (“Alleon”), a specialty finance company focused on providing medical accounts receivable factoring, medical accounts receivable financing, and cash flow solutions to medical providers in the U.S., recently closed a medical receivables factoring facility with a school based behavioral healthcare company in Florida (“Company”).
The Company has over two decades of experience and its program is designed to help at-risk kids overcome behavioral issues such as academic underachievement, violent behavior, anger management, bullying, chemical dependence, oppositional defiance, negative peer influences, grief/loss, low self-esteem, and more.
The Company had been working in 60 schools and approached Alleon after being approved to expand its program into an additional 150 schools. The medical insurance carriers reimburse the Company for each patient treated, however there is a delay of up to 90 days from when the Company performs its service to when it gets paid. This delay hampers the Company’s cash flow especially during a growth phase.
The transaction was structured as a medical factoring facility made up of receivables that are billed to commercial health insurance companies and governmental agencies. Alleon is advancing up to 80% on eligible receivables.
“This is a great example of a company using a factoring facility to grow its practice at an exponentially faster rate than it could organically. Alleon is delighted to help this company fulfill on its mission of helping at risk children through behavioral health services,” said Ben Rutkevitz, V.P. of Business Development at Alleon.
About Alleon: Alleon Healthcare Capital, a division of Alleon Capital Partners LLC, is a specialty finance company focused on providing cash flow solutions for healthcare providers in the U.S. that are unable to secure financing through conventional sources. Alleon works with providers nationwide, as long as they receive payments from Medicare, Medicaid, Commercial Insurances, Private Insurances, HMO/PPOs, Managed Care, No-Fault/PIP carriers, Worker’s Compensation carriers, and Letter of Protection (Personal Injury) cases.