NOT JUST FOR THE FISCALLY CHALLENGED

MAR [Medical Accounts Receivable] funding is not just for the fiscally challenged healthcare providers. As healthcare leaders and financial executives look for more tools to add to their financial toolbox, they are realizing that they can use the flexibility of a Sun Capital HealthCare MAR funding program to fund long term growth and expansion.

There are several strategic reasons for healthcare executives to utilize their third pary claims [or A/R] as a debt-free funding source.

1. Accelerate cash flow - MAR funding provides an immediate infusion of cash without the lengthy application process of banks.
2. Provider is under fiscal stress - while cash flow is often an obstacle to growth or profitability, MAR funding turns a non performing asset, third party claims, into working capital that will yield an internal rate of return.
3. Realize cost savings from operations - MAR funding allows providers/suppliers to take advantage of cash discounts and/or quantity discounts and/or other savings typically offered by vendors. Other improvements in operations that typically are outside the context of capital budgets and/or new marketing programs to generate additional revenue are some of the other ways that can yield cost savings at the operational level.
4. Protect credit ratings for bond issues - by using MAR funding and not adding debt to the balance sheet, substational savings on long term interest costs could be realized by maintaining or improving the provider's credit rating.
5. Reduce costs of capital expenditures - by using MAR funding to finance otherwise deferred capital projects or those "below the cut-off line" of current capital budgets, providers could take advantage of negotiating costs with suppliers and vendors at today's prices rather than at an increased cost in the future.

In the current economic climate that is fiscally challenging healthcare providers, one lesson to be learned is to not put all your financing options into one basket. Another lesson is to use all the funding tools, including MAR Funding, available in your financial toolbox to implement your strategy for growth and expansion.