HealthCare Finance:101

Traditionally, finance courses, whether in Business School, an MBA program, or a healthcare management course, teach that there are two ways to raise needed capital for your facility: debt or equity financing. But in the increasingly complex financial marketplace with its many demands for capital, these two methods may not be sufficient for the financial needs of the healthcare industry.

The commercial sector has long used a third funding tool, more so around the world than in the United States. It is projected that as much as 60% of financial transactions around the world use "commercial factoring" as a funding tool in their financial strategies while in the US it is only about 9% and in the healthcare industry it is less than 1%. The healthcare industry has been late to add this tool to their financial planning even though many international transactions, as well as many of the largest US corporations, have found it a very valuable funding strategy.

Sun Capital HealthCare, Inc. is changing that. Their MAR [medical accounts receivable] Funding program has been specifically designed and exclusively offered to the healthcare industry. It has taken the best features of commercial factoring, that it is debt-free and uses a non-performing asset - the provider's accounts receivable [i.e. claims] - to provide needed working capital, and applied it to the healthcare industry.

Because of Sun Capital HealthCare's intimate knowledge of the healthcare industry, including understanding such issues as reimbursement, coding, claim valuation, and provider contracts, all within a heavy regulatory context, they have developed a funding program that uniquely meets the needs of the healthcare industry. By adding Sun Capital HealthCare's MAR funding program to their financial mix, healthcare providers and suppliers have both emerged from fiscal stress as well as successfully expanded their business.

In today's economic environment, the healthcare industry is under increased financial pressure. Sun Capital HealthCare's MAR funding program is a proven tool that healthcare executives should be adding to their financial tool box.