Underwriting a healthcare provider for a factoring facility is a detailed process and delves deeply into all of the policies and procedures employed by the provider. This review very often uncovers deficiencies in various aspects of the provider’s internal systems. Billing issues appear, coding inconsistencies, undue delays by the provider’s staff in billing or collections procedures, lost or misplaced claims, incomplete files, lack of patient signatures assigning benefits and too many others to continue to list.
The bright side of the coin is that although a factor will not accept a healthcare provider with these issues but the issues are now uncovered and can be corrected. Even if the factoring transaction never happens the provider now has an x-ray of his/her business. The value added here is well beyond any underwriting or application fees charged and can ultimately lead to the provider avoiding Medicare audits, fines or HIPAA issues. Additionally correcting internal procedural problems can improve the speed at which reimbursements arrive.
Xynergy Healthcare Capital performs detailed due diligence that will provide the medical practice with a solid review of how the practice runs and where the deficiencies can be found and improved.
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