HME providers struggle to stay afloat while patiently awaiting reimbursements for their services. The need for a source of funds becomes very important. It appears the banks have been very negative when a small company such as a HME, no matter how well operated, seeks short-term funding.
Today providers need dollars to cover the time it takes to do the paper work while awaiting their reimbursements. Medicare and Medicaid is not the same as an OTC cash sale. When an OTC sale is made, money changes hands and the deal is completed. No time delay, no problem and no one trying to see if they can find a flaw to make the delay even longer.
The banks have so much money stored away they now are charging a fee to hold those dollars. This money is sitting in vaults which could be used to help small businesses. Judiciously loaned to HME providers, they would be able to effectively halt the downturn the country is experiencing. I received an announcement that one of the major companies in our profession has taken giant step forward to address this problem.
I saw in Mobility Management (8/31) an article by Laurie Watanabe that reported: Drive Medical has launched Drive Credit Company, which the manufacturer describes as its “new financing division designed to provide cash flow option to providers through its new C.F.O. (Cash Flow Operations) programs.”
I have contacted Drive Credit and as soon as I receive all the pertinent information a full report will follow. This, to me, appears as a formidable approach to some of the financial problems facing providers.
At Medtrade this fall I hope to interview some of the recipients of these loans, if it is at all possible. I look forward to seeing you in Atlanta at the Georgia World Congress Center. This year, the show is coming at a very critical time and so be sure you are there.