“Insurance”

An applicant recently sent in a request for factoring who was in the home-based hospice industry. Until now he was perfectly comfortable with his cash flow and was in a good cycle being able to pay expenses and withstand the typical payment profile for that industry.

With the implementation of ICD-10 his cash flow fears resulted in his seeking a factoring relationship which he felt would mitigate his anticipated delays in payments due to the new coding regulations and numbers. Accordingly Xynergy Healthcare Capital has underwritten the transaction and plans it first funding within a week.

The interesting thing about this is that the applicant was informed that our minimum contract was one year and he said that the fees he would have to spend to break the contract prior to the one year term was to him an “insurance” policy to get over the ICD-10 obstacle. Still another advantage of factoring appears in the midst of the healthcare industry’s most significant administrative change in decades.