At What Stage?
Senex will partner with a healthcare provider to purchase accounts at different stages of the healthcare provider's revenue cycle, allowing the healthcare provider a choice of how to accelerate its cash flow. We provide the healthcare provider with cash up front, on a non-recourse basis and these are dollars that can be booked straight to a healthcare provider's bottom line.
Primary Accounts - Senex purchases bad debt receivables at the time of write off - before these bad debt accounts are placed with a collection agency. In addition to accelerating cash flow, immediately selling accounts rather than placing with an agency will free up some of the time the healthcare provider is currently spending to "manage" its collection agencies.
Secondary Accounts - Senex purchases bad debt receivables after the healthcare provider's collection agency has had an opportunity to work these accounts. Senex purchases only the non-performing accounts; we do not purchase accounts with which the collection agency has had success.
How Often?
The initial sale may include accounts that have accumulated over a period of years, the "Archive". These accounts may have been recalled, or more typically, are placed with a collection agency indefinitely where they are all but forgotten after the first few months of active collection efforts. Given the aggregate volume of many years of uncollected bad debt, the initial purchase can result in a significant cash payment.
Following the initial Archive sale, most healthcare providers will engage in a "Forward Flow" arrangement whereby accounts are systematically recalled from the collection agency and sold to Senex on a monthly or quarterly basis. Forward Flow placements provide a steady and predictable stream of cash flow to the healthcare provider, and typically provide an incentive for the collection agencies to improve their recoveries once they know they will not have the accounts forever.