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"The industry is bracing for a 30, 60, or even 90-day delay in payment from the insurance carriers," said Leon Chernyavsky, partner, Alleon Capital Partners. "Every practice should be prepared to withstand a cash crunch and should not wait until the ICD-10 implementation date of October 1, 2014."
As part of ADP's three-point program Alleon will offer a revenue cycle financing program aimed to minimize the impact of any revenue delay or lock-up caused by ICD-10, as well as other regulatory or industry reasons. The full press release can be seen here, http://www.marketwired.com/press-release/ADP-AdvancedMD-Announces-ICD-10-Transition-Program-Lighten-Burden-Private-Practices-1883310.htm.
The revenue cycle financing program includes the following two options:
• Bank statement cash advance: This is an advance against future revenue in the form of a onetime cash advance to medical providers based on a six-month average of gross revenue, typically within 72 hours of application.
• Accounts receivable based line of credit: This is a loan that provides the flexibility to receive cash sooner based on the provider's accounts receivable. The line of credit supports growth, and establishes a relationship with a financial partner that understands medical revenue cycle management and can help practices deal with the cash flow needs.
ADP clients may fill out a quick online application to be considered for this program.
The International Statistical Classification of Diseases ("ICD") is used by medical providers in the U.S. to classify diagnoses and inpatient procedures. It will undergo its 10th revision, replace ICD-9, and must be implemented by October 1, 2014. The new revision is occurring because ICD-9 is over 30 years old and produces limited data about patients' medical conditions and hospital inpatient procedures. ICD-9 codes are mostly numeric and have 3-5 digits, while ICD-10 codes are more robust, alphanumeric, more descriptive, and contain 3-7 characters. Although this transition will improve the overall billing procedures it is widely expected to cause delays in payments as medical providers, billing software providers and clearinghouses work out the kinks.
ABOUT ALLEON: Alleon Healthcare Capital, a unit of Alleon Capital Partners LLC, is a specialty finance company focused on providing cash flow solutions to medical providers that are unable to secure financing through conventional sources. Alleon works with providers nationwide, as long as they receive payments from Medicare, Medicaid, Commercial Insurances, Private Insurances, HMO/PPOs, Managed Care, No-Fault/PIP carriers, Worker's Compensation carriers, and Letter of Protection (Personal Injury) cases.
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CONTACT INFORMATION
Ben Rutkevitz VP of Business Development +1-201-340-6346 [email protected]. http://alleoncapital.com/medical http://medicalfinancingreceivables.co/.
SOURCE Alleon Healthcare Capital
