Knowing When to Walk Away
Accounts receivable are often the most significant asset of a healthcare provider. As this @MorningEdition interview points out (Doctors' Offices Get Put on Hold Trying to Find Out Who's Insured), there could be a slowdown in insurance reimbursements on those newly enrolled in an Obamacare (ACA) exchange insurance plan. Moreover, the insurance company could seek recoupment of previously paid exchange plan payments if the patient's coverage is later denied.
In states like Tennessee where the government has opted not to expand Medicaid, there are a significant number of individuals whose income is too high to be eligible for Medicaid, but too low to receive subsidized coverage under the ACA. Those patients that fall into this gap of coverage could leave medical providers with unpaid and uncollectable medical bills. Couple that with the current decrease in Medicare/Medicaid reimbursements, and it may spell trouble for certain healthcare providers.
Bottom line — if you are a healthcare lender and the major piece of collateral for your loan is healthcare receivables, you may want to take a closer look at your borrower's A/R reports to prevent account collection issues from becoming a serious problem in the future.