Securing Debt Financing a Challenge for Healthcare Providers

The cover story in the February 25th issue of Modern Healthcare describes the difficulty many hospitals, nursing homes and other healthcare providers are having in securing debt financing for their institutions. The basic problem is that the subprime mortgage market turmoil has made most lenders very cautious in providing debt financing at all, and if it is available, the interest rates being charged have jumped to the point that healthcare providers just cannot afford the steep fees. This has affected even very large, well-established health systems such as Multicare Health System, Christus Health and SSM Health Care. It has not been unusual for interest rates to increase from 3.9% to 15%, and even 20%. Many health care providers are unwilling to sign-up for long-term debt at these rates. Therefore, many healthcare providers are looking for short-term financing vehicles to use while the interest rates for debt settle down to more favorable long-term rates. While this type of short-term financing has been difficult to find, a well-established firm in Boca Raton, FL, Sun Capital HealthCare, Inc. does provide a good solution.

Sun Capital HealthCare, Inc. is a premier funding source for healthcare providers. They provide a cash-infusion by purchasing accounts receivable backed by third party payors. They are a very stable, reliable and ethical firm with more than twelve years of experience within the industry. During that time, they have purchased almost $4 billion in accounts receivable. They are frequently called on to help healthcare providers that have a cash-flow problem, or need funds for expansion, but chose to not add debt to their balance sheet.

Their Medical Accounts Receivable Funding solution can provide the working capital healthcare providers need without a lengthy contract, thereby providing a financial "bridge" until the more traditional lending sources become available again at a reasonable fee. They have the ability to move quickly to provide working capital so that healthcare providers do not have to sign long-term contracts for debt financing at today's extremely high rates.