Compounding pharmacies experience, as a natural course of events, withholds or draw-backs from their carriers when their reimbursement arrive. So the question has been asked by many applicants for factoring facilities who are compounding pharmacies, how do you deal with these occurrences?
First, Xynergy Healthcare Capital evaluates how often this happens and has happened in the past. If the frequency is not manageable or above the frequency that we see as normal in the industry then we will not even underwrite any further and we will decline the transaction. However if in the normal range of frequency, the draw-backs can be mitigated by using reserves to close those claims that have been previously paid and then payment was drawn back. Simply put, the claim will be re-opened upon receiving the draw-back information and then closed again with reserves generated from other payments that have been posted already.
Expertise in a particular industry and sub-section of that industry is very important. Healthcare is a wide open territory and many anomalies exist in all of the different specialties. Although one can never be 100% acquainted with every nuance of every specialty, Xynergy Healthcare Capital certainly has a vast understanding of the sectors that we fund. One of these sectors of course is compounding pharmacy.
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