PATIENT ACCOUNTS RECEIVABLE FINANCING BORROWING BASE CALCULATION (BBC)

patient-accounts-receivable

HMP has developed a process and companion financial model that allows for rapidly computing a hospital’s borrowing base availability, for which active patient accounts receivable (or the revenue thereof) is used as collateral for the underlying credit facility. The model enables the hospital to compute its borrowing base on a daily or weekly basis and produce a valid “Officer’s Certificate” to enable it to draw on an available credit facility.

This tool, which was created to mirror the strict documentation standards of a leading lender to the healthcare industry,  was specifically designed to be used in conjunction with credit facilities drawn on a local bank or perhaps a non-financial lender (DIP lender or potential buyer of the facility) that is not regularly engaged in patient accounts receivable financing.  Once installed, HMP will monitor the process on behalf of the lender on an ongoing basis.

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