We are happy to announce the closing of a $5,000,000 medical receivables financing facility with a Medicare certified home health agency in Louisiana (“Company”).
The Company is based in northeast Louisiana and has been serving its community for over 20 years. It provides skilled nurses, occupational therapists, home health aides, physical therapists, speech therapists, and medical social workers to patients that are recuperating from an illness or need medical observation in their homes. Serving more than 2400 patients in its service area the Company’s programs focus on making home care an attractive alternative to facility care for patients, family, referral sources and payors by getting patients out of the hospital as quickly as possible with the support of trained home health care professionals.
When asked how the Company will benefit from the financing, the CFO said, “The new financing that we now have with Alleon provides us the peace of mind and stability in our financial projections as well as the access for needed capital for things such as financing future growth, consolidating existing liabilities to more favorable and better structured terms, and possible future acquisitions of other competitors, etc. With this financing in place, new doors of opportunities are opened and can be explored.”
The transaction was structured as a revolving financing facility made up of medical receivables that are billed to government and commercial health insurance carriers. Alleon advanced up to 75% on eligible receivables with no amortization, allowing the company to make interest only payments and have enough cash on hand for operations.
“Alleon was happy to work with a company providing such important work in its community. We were able to look past the tax liabilities, pay them off, and were confident that management was steering the Company in the right direction with our medical receivables financing facility,” said Ben Rutkevitz, V.P. of Business Development at Alleon.
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