Creative Financial Solution for Funding Those "Below the Line" Projects

Marcus Evans hosted an important National Healthcare CFO Summit in Ponte Vedra, FL last week. The event was designed to provide a unique, interactive and educational forum where healthcare financial leaders could receive important updates, and share ideas and experiences regarding key strategic initiatives in healthcare finance.

Of coure, the main focus for many of the attendees was to gan insight on what healthcare providers can do to help offset the continuing decline in their financial positions. As we all know, costs continue to rise while payments are slowing down which puts healthcare providers in a difficult financial position.

During the conference, one Chief Financial Officer at a not-for-profit hospital was lamenting the fact that the current liquidity crunch has caused him to put several very important projects "below the line" meaning that, although they were valuable, revenue producing projects, the hospital just did not have the funds to invest at the time. He just could not put more debt on his balance sheet.

At one of the conference sessions, the CFO heard a presentation on Medical Account Receivables (MAR) Funding and recognized that this unique financial vehicle could well be just what the doctor ordered. MAR funding will enable the healthcare provider to obtain working capital without putting debt on the balance sheet.

In this case, the CFO is evaluating doing some of the unfunded projects using MAR funding.