Alleon Healthcare Capital (“Alleon”), a specialty finance company focused on providing medical accounts receivable factoring, medical accounts receivable financing, and cash flow solutions to medical providers in the U.S., recently closed a medical receivables financing facility with Community Health Initiatives (“CHI”), a Federally Qualified Health Center (“FQHC”) located in Brooklyn, NY.
CHI is a not for profit entity that has been operating since 2014 and provides accessible, comprehensive care to its community’s under-served population. CHI’s services include primary care, physical therapy, and pain management.
CHI approached Alleon to finance its accounts receivable to help with its working capital needs. Executive director of CHI, Alex Movshovich said, “The new financing allowed CHI to maintain its operations at full capacity, allowing CHI to provide primary and specialty services within its scope and required capacity.”
Mr. Movshovich also commented on the funding process, “[Alleon’s] process is very detailed and thorough. Something you would expect dealing with any big name bank. The speed from start to funding, on the other hand, is way faster.”
The transaction was structured as a financing facility made up of third party medical receivables that are billed to commercial health insurance companies and governmental agencies. Alleon is advancing up to 80% on eligible receivables.
“We’re happy to provide working capital to a medical provider that is focused on its community and under-served population. With this facility CHI will be able to withstand short disruptions in cash flow, while continuing its mission, ” said Ben Rutkevitz, V.P. of Business Development at Alleon.
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