What Is Days Cash on Hand?
Days cash on hand (DCOH) is how many days a hospital or health system could keep paying its operating expenses using only the cash it has now, with no new money coming in. It's one of the main liquidity measures used by hospital CFOs, boards, lenders and rating agencies.
What Is HCSS (Healthcare Claims Scoring System)?
HCSS (Healthcare Claims Scoring System) is Capital Pulse's model for giving a provider's medical claims a standardized score, much as a credit score summarizes a borrower. It predicts the outcomes that determine a claim's value, then scores the claims portfolio itself rather than the hospital that holds it.
What Is Healthcare Asset-Based Lending?
Healthcare asset-based lending (ABL) is a loan, usually a revolving line of credit, secured mainly by a provider's accounts receivable. How much the provider can borrow is tied to the value of its eligible receivables, not only to its overall financial strength.
What Is Healthcare Claims Valuation?
Healthcare claims valuation is estimating what a medical claim will actually be paid, and when, rather than what was billed. A valuation combines the probability the claim is paid, the expected amount, the expected timing and the risk of denial into one value.
What Is Healthcare RCM (Revenue Cycle Management)?
Healthcare revenue cycle management (RCM) is the process a provider uses to get paid for patient care, from scheduling and registration through coding, claim submission, payment and collections. Good RCM means more claims are paid, in full, and sooner.
What Are Medical Receivables?
Medical receivables are the amounts a healthcare provider is owed for care it has already delivered and billed but not yet been paid for. Most of the money is owed by insurers, such as Medicare, Medicaid, Medicare Advantage plans and commercial health plans, and the rest by patients.
What Is Medical Receivables Financing?
Medical receivables financing is any way for a hospital, clinic or other provider to get cash now for insurance claims it has already billed but not yet been paid for. The provider either borrows against those receivables or sells them, instead of waiting 30 to 120 days or more for payers to pay.
What Is Medical Receivables Securitization?
Medical receivables securitization is pooling many healthcare providers' insurance claims, selling the pool to a separate legal entity, and having that entity issue securities to investors that are repaid from the claims' payments. The securities are sometimes called medical receivables-backed securities (MRBS).