Medicaid Cuts Add Up

A recent article in HME News the publication focused on DME (Durable Medical Equipment) and HME (Home Medical Equipment) http://www.hmenews.com/article/medicaid-cuts-add providers reported that 70% of respondents to a survey said that state reimbursements from Medicaid have been reduced in the past year. Further response indicated that these providers are having a difficult time surviving. HME news reports providers saying “this new cut means that, in many cases, we will not be able to continue providing recipients with the equipment/supplies that they need.” Quoted her is Jeff Burkett, DME Manager at Mount Vernon, Ill.-based TMS Mobility & Rehab, which saw a 16.75% cut in Medicaid reimbursement rates in May. Additionally half the respondents reported their reductions as at least 15% or more. To add more pain some states like Rhode Island are reducing rates retroactively, a move that is devastating these already wounded DME providers.

The question arises; how can DEM and HME businesses survive let alone grow and prosper? Two solutions come to mind. First, DME’s can increase their non-governmental business by marketing efforts to get patients insured by commercial carriers. Second these providers can pay for their equipment immediately and benefit from fast-pay discounts which would mitigate some of the decreased reimbursements by Medicaid. The problem with each of these solutions is cash flow. How can the provider, already cash poor, pay their vendors fast? Additionally, non-governmental carriers pay very slowly typically well beyond 30 days. Therefore one might think that these solutions are “pie in the sky.”

Xynergy Healthcare Capital (XYN) has provided cash flow solutions for DME’s allowing for both of these solutions to come to life. The XYN receivables finance program brings cash flow to you within a day following your delivery and billing of the equipment. The XYN program is not a loan and does not provide any cash that you haven’t already earned. We simply bring your money to you sooner-much sooner.

Consider this business finance solution, even if your personal credit is not stellar, as this type of finance depends on the creditworthiness of those that pay you-your carriers.