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Xynergy Healthcare Capital
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The Program

An innovative program that can give you the infusion of working capital necessary for growth and success.

There are two types of accounts receivable financing utilized by the healthcare industry:

1) Using your medical receivables and other assets as collateral to borrow money from banks.

2) Selling your medical receivables to Xynergy Healthcare Capital,  a specialized medical accounts receivable finance source.

  • Xynergy purchases your receivables rather than lending you the money
  • Xynergy turns your receivables into cash within 24 to 48 hours
  • Xynergy funds on a claim by claim basis rather than batching your receivables
  • Xynergy’s qualifying audit provides a value-added financial x-ray of your organization’s fiscal health

The Audit: 

  • Validates your internal controls
  • Establishes a net collectible valuation of your receivables on a claim by claim, payor by payor basis, using your actual reimbursement history
  • Provides you with a financial overview that often identifies areas of lost revenue

Xynergy Healthcare Capital has a deep understanding and working knowledge of the healthcare industry, its industry specific regulatory requirements, and cash flow challenges. With our qualifying audit, the valuation we put on your claims will be higher increasing the amount of funding you are eligible to receive. Additionally, the availability of funding grows with patient volume because we fund on a claim by claim basis so you have the flexibility to customize the program to meet your cash flow and working capital requirements.

 Supporting Short Term and Long Term Growth and Expansion

Healthcare providers  with the endorsement of their financial advisors  have found that by using our program, their medical receivables can be a productive asset rather than a cash flow obstacle to growth and profitability.

A commitment to client satisfaction has made Xynergy an industry leader with the resources and expertise to support the growth of healthcare organizations. Our funding process uniquely allows Xynergy clients to customize their medical receivables finance program to meet specific needs and work within their existing financial framework. Xynergy’s cash flow solution includes virtually unlimited funding resources, a flexible and debt-free funding program, and our in-depth understanding and working knowledge of healthcare organizations. Xynergy has the experienced team to turn your organization into a success story.

Simply put, Xynergy Healthcare Capital purchases your third party claims [your A/R] and advances you cash within 24-48 hours of submission. With the flexibility of our program you have the ability to:

  • Meet payroll obligations
  • Increase staffing needs
  •  Finance a new service or product line
  • Negotiate terms with vendors
  •  Expand marketing programs to generate new business
  • Accelerate capital programs to improve return of investment [ROI]

Xynergy Healthcare medical accounts receivable finance program can be customized to meet your needs.

The Challenge

Whether in expansion mode or fiscal stress, healthcare organizations are faced with a growing number of challenges:

  • Solving daily working capital needs
  • Lagging reimbursements
  • Reduced payments
  • Spiraling costs
  • Denials from payors
  • Changing technology
  • Increasing patient demands
  • Reduced access to capital
  • Restrictive banking policies
  • New HIPAA mandates
  • Stringent regulatory policies
  • Electronic medical record requirements
  • Increased demands on cash flow
  • Modernizing facilities
  • Protecting market share

Success in meeting these challenges depends upon maintaining a consistent cash flow and having access to sufficient working capital. to support fluctuating revenue cycles. A healthy solution to the fiscal demands created by these challenges should include a well-balanced portfolio of funding tools that support short-term and long-term financial objectives.

Xynergy Healthcare Capital Medical Accounts Receivable Finance program is a strategic and debt-free funding resource for healthcare organizations. If you receive reimbursement from third party payors such as insurance companies and government agencies, you are eligible for an XHC finance program.

Financing Tools Most Commonly Used

To fund their organizations  healthcare providers use:

  • Accounts receivable financing / factoring
  • Debt financing
  • Equity financing

Deciding which tool to use and when to use it depends on balancing Cost vs. Value, since the “lowest cost” money is not always the “best value” funding source to meet your fiscal needs.

  •  Accounts receivable financing / factoring
  • Using your A/R to generate working capital

Accounts Receivable Financing / Factoring – Using Your A/R to Generate Working Capital

Accounts receivable financing  including commercial factoring, is a multi-trillion dollar financial industry that provides a cash infusion to a wide variety of businesses of all sizes  including Fortune 500 companies. Medical accounts receivable financing requires a specialized funding source that knows the healthcare industry because of the complexities involved in the valuation of your medical receivables. Most traditional funding sources available for the healthcare industry base their analysis on your credit history and  add debt to your balance sheet. Xynergy Healthcare Capital, however, purchases your accounts receivable, so that the cash infusion to your healthcare organization results from the sale of your medical receivables and not as a loan. When deciding between A/R funding sources and their impact on your balance sheet, recognize whether your funding source is lending you money or purchasing your medical receivables.

Debt Financing – Borrowing Money For Your Working Capital

  • Bank loan: Easily understood and offered by a wide variety of lending institutions, the interest rate is readily apparent. However, when the often hidden fees and restrictions on the use of the funds are taken into consideration, the “real costs” of bank financing can be substantially higher than the quoted interest rate.
  • Asset based lending: Essentially the same as a bank loan, except it focuses on A/R and inventory as primary collateral. It is most effective when used to provide a single cash infusion rather than a cash flow solution. In addition to banks, asset based lenders provide this form of financing with  the difference being that they use private sources of funds rather than the public funds deposited in banks.
  • Bonds: Typically used to finance long-term capital needs. Bonds are debt securities similar to stocks, except that bond holders lend money rather than own equity and the bond issuer repays both principal and interest. Interest rates depend on the credit worthiness of the healthcare organization and conditions in the financial markets and can vary over time.

Equity Financing – Selling Stock or Ownership

Investment financing is also widely understood although not always readily available. The advantages include not increasing your borrowing and not having a repayment schedule reducing your working capital. In the short-term, it may appear to be the least costly option since you do not incur interest expenses. However, investors and equity partners often demand healthy balance sheets and operational performance before providing funds. They may not understand your healthcare business and in seeking to exercise control they can limit your decision making and growth potential. Investors require significant ownership and profit participation, which becomes costly over the long run.

Supporting Short Term and Long Term Growth and Expansion

A commitment to client satisfaction has made Xynergy Healthcare Capital an industry leader with the resources and expertise to support the growth of healthcare organizations. The funding process using “the Xynergy edge” uniquely allows  clients to customize a medical receivables finance program to meet their specific needs and work within their existing financial framework. Xynergy’s cash flow solution includes virtually unlimited funding resources, a flexible and debt-free funding program and Xynergy’s in-depth understanding and working knowledge of healthcare organizations. Xynergy has the experienced team to turn your organization into a success story.

Borrowing Money from Banks:

  • Adds debt to your balance sheet
  • Ties up other assets
  • Interest rates can vary since they are dependent on the credit market
  • Hidden fees
  • Personal guarantees often required
  • Lengthy application process, delaying the needed cash infusion
  • Credit limits and funding caps
  • Restrictive terms
  • Insufficient credit lines due to the often “under valued” valuation of assets, especially your A/R
  • A loan repayment schedule which reduces the cash available to use as working capital

Xynergy Healthcare Capital Program

  • Debt free working capital
  • Improved cash flow
  • Cash infusion within 24-48 hours of claim submission to Xynergy
  • Cost of funding does not vary with changing interest rates
  • Availability of funding grows with patient volume without re-applying for additional financing
  • Unrestricted use of funds to best meet your financial and business needs
  • Increased financial flexibility to use with other financial tools since your assets are not used as collateral for a loan
  • A healthier balance sheet which can reduce the costs of borrowing while maintaining debt capacity

Healthcare organizations can reduce their dependency on borrowing as their sole form of financing by utilizing Xynergy’s program. It can be customized to effectively work with your other financial tools to meet your fiscal requirements whether they are short term cash flow needs, long term capital programs, or if  you are in growth mode or fiscal stress. Since Xynergy’s program provides a predictable and steady cash stream not dependent on lagging reimbursements, your financial plans can be more effective in generating sufficient working capital that is less subject to the strains of fluctuating revenue cycles. Healthcare providers with the endorsement of their financial advisors, have found that by using our program  their medical receivables can be a productive asset rather than a cash flow obstacle to growth and profitability.