FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
 
Skip Navigation LinksHome / News / Read News

Print

Alleon Healthcare Capital Provides $2MM Facility to Substance Abuse Clinic

October 28, 2016, 07:20 AM
Filed Under: Healthcare

Alleon Healthcare Capital, a specialty finance company focused on providing medical accounts receivable financing, medical accounts receivable factoring, and cash flow solutions to medical providers in the U.S., recently closed a medical receivables financing facility with a substance abuse clinic in California .   

The company operates two treatment centers and offers services such as detox, residential treatment, partial hospitalization, intensive outpatient treatment, individualized therapy and group therapy.  Its goal is to provide compassionate care from highly trained therapists, doctors and support staff to rid the hardships of addiction and trauma for its patients.

The company has been in business for almost two years and was not bankable, however the management team and its staff was very experienced in the addiction treatment and finance arena and was seeking a medical receivables line of credit to accommodate current operations and continued growth.  Additionally, the company was looking to refinance existing debt and improve its revenue cycle management as delay in payments, which is typical for this kind of business, was causing a cash constraint.

When asked about Alleon’s process the company president said “Alleon was able to come out to our business and really understand what the drivers of business growth were for us. The team was professional and rolled up their sleeves to really understand the business from the ground up. After the initial meetings, we were well on the way to outlining a topline agreement for our needs. The whole process proceeded at the pace we wanted, they were never pushy or overly demanding in their documentation asks.”

The transaction was structured with a borrowing base made up of medical receivables that are billed to commercial health insurance companies.  Alleon advanced up to 80% on eligible receivables with no amortization allowing the company to make interest only payments and have enough cash on hand for operations.  

“The Affordable Care Act helped expand behavioral and substance abuse healthcare coverage in the U.S. and spur growth within the industry.  We are very active in providing substance abuse clinic financing and were happy to find experienced managers that provide quality care,” said Leon Chernyavsky, Managing Partner at Alleon.

Alleon Healthcare Capital, a division of Alleon Capital Partners LLC, is a specialty finance company focused on providing cash flow solutions for healthcare providers in the U.S. 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.





Week's News



Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.