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S Ferconio

Publications and source records attributed to S Ferconio.

4 recordsLinked to original sources
PubMed1991

Compare benefits before entering receivables financing.

Financing accounts receivables is becoming a popular strategy in the healthcare industry. Factoring and securitization are two financing methods available to hospitals. Patient accounts managers who understand the programs' structures, incentives, and costs will be able to achieve the maximum benefit for their hospitals when choosing one of these transactions.

Accounts Payable and Receivable↗
PubMed1991

Financing maneuvers. Two opportunities to boost a hospital's working capital.

Two receivables financing approaches, factoring and asset-backed securitization, offer an initial cash flow boost and a predictable source for continual cash flow. In a typical receivables factoring program, a healthcare organization receives advance funding from its receivables and reduces collection and follow-up efforts required of its staff. In exchange, the organization: Sells receivables at a discount between 5 percent and 10 percent off face value; and Pays a factoring fee of up to 20 percent of sold receivables. In a typical asset-backed securitization: Proceeds generated from the sale of A1-rated commercial paper are used to purchase receivables from a hospital; Accounts receivable eligible for sale are advance-funded at a level between 80 and 90 percent, with the unfunded portion remaining an asset of the hospital; The hospital is responsible for collection and follow-up activities; and An asset manager maintains cash collections to retire commercial paper notes and pay administrative costs. A healthcare organization interested in receivables financing should review each option's structure and benefits to assess advance funding provided, costs, a seller's level of control, and program eligibility requirements.

Accounts Payable and Receivable↗