In an effort to maintain his business, an owner of a mid-sized Durable Medical Equipment company applied to become a provider for numerous commercial healthcare carriers (insurance companies) and, at the same time began to decrease the Medicare patients he acquired. His decision to do this was based on Medicare’s implementation of the competitive bid program, pre-payment claims reviews protracting the payment of his claims, and in general the uncertainty that claims would be paid based on the aggressive review and audit processes. He said that he “could not live with the constant delays, audits and reviews that disrupted his business by delaying reimbursements.”
The issue with commercial (non-Medicare) payments however is that the review process and auditing did not exist but the normal time it takes to pay claims is the same as Medicare – 30-45 days.
Presenting this challenge to Xynergy Healthcare Capital (XYN), relieved him of this stress. Using the XYN receivables finance program, the DME was being paid within 24 hours of providing his product to his patients. He remarked that the cost of just a small percentage of the claim’s value, the peace of mind and increased availability of cash to buy inventory makes sense and takes away the pressure to meet payroll and pay bills.
XYN can do the same for any type of healthcare provider being paid by third party carriers to include Medicare and Medicaid.
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