We are happy to announce the closing of a $1,000,000 medical receivables factoring facility with a school-based Behavior Healthcare company located in Florida (“Company”).
The Company has over two decades of experience and its program is designed to help at-risk kids overcome behavioral issues such as academic underachievement, violent behavior, anger management, bullying, chemical dependence, oppositional defiance, negative peer influences, grief/loss, low self-esteem, and more.
The Company was providing services in 60 schools and approached Alleon after being approved to expand its program into an additional 150 schools. Commercial and government Medical insurance carriers reimburse the Company for each patient treated, however, there is a delay of up to 90 days from when the Company performs its service to when it gets paid. This creates a cash crunch as the Company’s employees, specifically the motivational coaches, get paid weekly.
The transaction was structured as a medical factoring facility made up of medical receivables that are billed to commercial health insurance companies and governmental agencies. Alleon is advancing up to 80% on eligible receivables and is providing additional billing and collection support.
“This is a great example of a company using a factoring facility to grow its practice at an exponentially faster rate than it could organically. Alleon is delighted to help this company fulfill on its mission of helping at-risk children through behavioral health services,” said Ben Rutkevitz, V.P. of Business Development at Alleon.
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