HME Providers Forms Vendor Alliance With Sun Capital HealthCare

Sun Capital HealthCare, Inc (SCH) has been selected to join HME Providers' vendor alliance program as a preferred provider of Medical Accounts Receivable (MAR) Funding.

Members of HME Providers will be able to benefit from SCH's customized service which serves as a debt-free funding solution for healthcare companies. HME/DME providers can use MAR Funding as a source of working capital to create a monthly cash flow, meet payroll and overhead, reduce debt and cut costs by using cash discounts, as well as for a variety of other funding needs.

HME Providers currently offers more than a dozen vendor business-to-business alliances and passes all special program savings onto their members.

HME/DME Manufacturers Look For Ways to Help Providers Reduce Costs

In the past, if Medicare cut reimbursement, HME/DME providers more often than not pressured manufacturers to decrease product pricing a comparable amount. However, a recent article featured on hmenews.com reports that manufacturers are no longer complying with this old strategy.

"This is not an environment where manufacturers can fund these changes," said Carl Will, Invacare's group vice president for HME. "Even with competitive bidding, it's not likely that prices are going down. Manufacturers are under significant pressure and in an already low-margin business."

Manufacturers may not be able to decrease costs; but they can help control them. At Pride, employees help providers with coding and billing, which speeds up the claims process and increases cash flow. Another way to increase cash flow that should be considered by providers is Medical Accounts Receivable (MAR) funding. With MAR funding, debt-free funds are available for everyday operations, business growth, expansion, etc.

Providers can also use MAR funding to increase their purchasing power. They can use the increased cash flow to take advantage of volume order discounts and save money on freight charges by reaching the 500-pound minimum for free shipping available by most manufacturers.