FFAM360 Delivers Reimbursement Guarantee® to Provide Immediate Liquidity to Healthcare Providers on Unpaid Accounts Receivable
Revenue is essential in supporting the delivery of quality healthcare. But with decreased reimbursement from insurance payers, increased deductibles, and rising consumer debt in America, how do healthcare providers address the issue of uncompensated care and subsequently lost revenue? A Harvard poll found that 26% of American adults experienced financial troubles as a result of medical bills and The Commonwealth Fund found that healthcare costs have been rising faster than a worker’s wage for over a decade. These statistics reveal why medical debt is the number 1 reason people file for personal bankruptcy (USA Today) and leave providers in an increasingly precarious position when it comes to the collection of uncompensated patient responsibility balances (debt).
Back in late 2009 as the U.S. economy started to climb out of the “Great Recession,” the management at FFAM360 recognized the widening gap between healthcare expenditure and reimbursement revenue (collections) earned by healthcare providers. “There was an inverse relationship between those two financial elements. Therefore, we wanted to advance the way healthcare providers looked at cash flow to maximize the speed of reimbursement, improve functionality, and increase profitability on their unpaid patient accounts receivables,” said Matthew Maloney, President of FFAM360. “In the revenue cycle, it’s about the revenue, and not the cycle. Therefore, FFAM360 created a solution that guaranteed reimbursement to healthcare providers on their unpaid patient balances, consequently reducing the financial burden of how to collect and allowing them to focus on innovative treatment.” When asked how the program works, he said “It’s simple. By selling the accounts receivable on qualified patient account balances (early-out and bad-debt), the healthcare provider is able to receive a lump-sum reimbursement (payment) under agreed upon contractual rate. This gives healthcare providers options to help alleviate their financial encumbrance on unpaid accounts, and virtually eliminates the protracted burden of collections.” Maloney added, “By using liquidity achieved thru the delivery of our Reimbursement Guarantee® program, we substantially strengthen the healthcare provider’s financial wellness, it’s that simple.” In addition to patient balances, FFAM360 says it expanded the Reimbursement Guarantee program in 2012 to guarantee repayment on Third Party Liability claims (such as motor vehicle accident [“MVA”] claims) for its clients.
To remain competitive, hospitals and other healthcare providers must stay up to date with new equipment technologies and replace aging facilities. Likewise, they must stay ahead of their financial goals by implementing cost-effective collection strategies of their unpaid A/R. “What can be more cost-effective and efficient than getting paid in one-lump sum based upon the net-present value of the account receivable,” added Maloney. Of course, Reimbursement Guarantee is just one solution delivered by the FFAM360 group of Companies. The Company has developed what it calls “silos of expertise,” giving it the ability to deliver a broad range of services to clients across the entire revenue cycle. That fact gives FFAM360 a significant competitive advantage over its competitors.
The FFAM360 group of companies provides comprehensive solutions specializing in business process outsourcing, accounts receivable management, and receivable purchasing and finance. By combining leading revenue management with institutional capital, FFAM360 has become one of the most well-known and respected financial institutions specializing in accounts receivable management. FFAM360 is certified by the Women’s Business Enterprise National Council (WBENC) as a certified women-owned business. FFAM360 was founded in 2002 and is headquartered just outside Atlanta, GA, with satellite offices in Phoenix, AZ and Paso Robles, CA.