ProfitStars, a division of Jack Henry & Associates, Inc. introduced an enhanced version of its BusinessManager accounts receivable solution for health care providers, a program that enables financial institutions to provide initial and ongoing cash to creditworthy businesses in exchange for their accounts receivables.

It has now been enhanced to meet the dynamic cash flow requirements of health care providers and medical service facilities that rely on payments from private insurance carriers and government payers. This expanded functionality enables financial institutions to strategically grow their deposits and loan business.

The aging population, government reform, and technology advancements are among the factors that support the projected 7% annual growth in the health care industry through 2025. Many health care providers and medical facilities that depend on payment reimbursement require short-term working capital to maintain cash flow and accommodate growth.

BusinessManager provides financial institutions a solution for providing the working capital and financing options to surgery centers and local hospitals; medical equipment suppliers; ambulance services; providers of pharmaceutical, medical staffing and physical therapy services; and other related businesses. BusinessManager provides accurate views into accounts receivable assets, allowing financial institutions to more confidently fund profitable companies.

Heritage Bank's home base of Jonesboro, Ark., is a hub for a variety of health care service providers. Gary Higgins, senior vice-president of lending for Heritage Bank, says, "Our institution … can now extend [BusinessManager] benefits to an entirely new audience that needs ongoing cash availability."

More than 200 banks currently employ the BusinessManager accounts receivable financing solution, with approximately 1,000 merchants on the platform.

The enhanced solution provides the functionality to better analyze reimbursement data and support financial institutions' decisions to fund newly generated claims. It also provides ad hoc reporting capabilities at the claim level, a business associate agreement, which is generally required by HIPAA, and specific language in the lien for "Healthcare Insurance Receivables." 

David Foss, president of ProfitStars, says, "Many financial institutions are more comfortable supporting accounts receivable financing for larger hospitals and physician practices, leaving other entrepreneurial-like health care and medical service providers vastly underserved. As Heritage Bank is demonstrating, BusinessManager can help fill that void by accurately assisting creditworthy customers with the management and funding of accounts receivable financing while generating recurring fee income for the institution."

 

[This article was posted on March 20, 2012, on the website of ABA Banking Journal, www.ababj.com.]    

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