MedAssets and Equicare Capital Partner on Medical Account Debt Sales

MedAssets, Inc and Equicare Capital, LLC announced a new, exclusive business relationship, which will offer MedAssets’ customers accelerated and increased cash payments for their accounts receivables.

Historically, most hospitals have not implemented effective collection processes and routinely write off co-payments and deductibles. However, with an increasing number of self-pay patients in the marketplace, bad debt accounts are growing to an unacceptable level. Bad debt in healthcare is estimated to be approximately more than $500 billion and is growing faster than any other segment of healthcare.

Equicare is a leading healthcare receivables management company based in San Marcos, Calif. The company’s cash acceleration programs are generally non-recourse and involve little or no risk for the hospital. Equicare provides a more predictable and reliable cash generation stream for hospital assets that have little or no book value. Collection processes are designed to coincide with healthcare providers’ organizational values and goals, and provide consistent and streamlined communication with patients.

“Our relationship with Equicare offers a win-win situation for hospitals doing business with MedAssets,” said John Bardis, chairman, president, and chief executive officer, MedAssets, Inc. “An immediate cash infusion from selling accounts receivables enables customers to fund much needed initiatives or invest in additional tools to improve business processes and operating margins.”

“The relationship with MedAssets gives Equicare the opportunity to serve more of the country’s healthcare providers,” said Manny Occiano, president, Equicare Capital, LLC. “We strongly believe our services offer the most responsible and productive alternative for handling hospital receivables. We know that behind these receivables are the faces of patients / healthcare customers. Our success relies solely in our ability to help these patients recover from the financial burden that may be associated with a healthcare procedure.”