A Cardiology Practice Benefits From MAR Funding

A cardiology practice consisting of 5 physicians contacted Sun Capital HealthCare (SCH) to see if we had any thoughts on how to maintain their income in an environment of decreasing reimbursements and higher operational costs. Our suggestion was simple, they should provide other services and/or procedures during the same working day in order to increase revenue.

As a cardiology practice, over 75% of their patients get annual stress testing, which the practice did not perform. They used a local stress testing lab. Wouldn't revenue geometrically increase if they provided that procedure and billed the full fee rather receiving a small referral fee? Unfortunately, there was no additional equity available to build such an addition.

SCH suggested the use of the group's laziest asset, their existing accounts receivable. Close to one million dollars in A/R was sitting on their balance sheet doing nothing. SCH opened the account and purchased the existing A/R to provide the large infusion to set up the lab.

On a daily basis thereafter, the cardiology group sold their daily billing to SCH in order to level out cash flow and eliminate expense pressures. The result, almost double the existing income was created simply by using the laziest asset in any business, accounts receivable.