PR - ACF Buys $600 million in Healthcare Accounts

ACF Medical Services, Inc. announced today that it has purchased aged accounts receivable portfolios from five major healthcare systems and a large emergency room physicians practice, thereby surpassing more than $1 billion of hospital distressed assets during the past 18 months.  During this period, ACF Medical Services has purchased and serviced aged accounts receivable from more than 50 healthcare facilities nationwide.

Overall, the new portfolios purchased by ACF Medical Services have a face value of nearly $600 million representing roughly 300,000 accounts from 15 hospitals and covering 11 states.  Additionally, the company announced that it has entered into multi-year “forward flow agreements” with two separate healthcare systems.

According to Daryl Deke, Executive Vice President and Principal of ACF Medical Services, the forward flow agreements were completed with existing clients.  “These agreements demonstrate our company’s strong working relationships with its clients.  Yes, we are providing our clients with immediate cash flow, but more importantly, we can assist in their existing process while improving patient relations.”

Deke also noted that the company’s agreement with an emergency room physicians practice signals a new opportunity for growth.  “Physician practices are contending with a growing accounts receivable problem.  However, our model of servicing patients is an ideal fit for helping physicians address this critical financial issue.

“We are very proud of the growth experienced by ACF Medical Services, as it substantiates our clients’ confidence in working with a company that specializes in the purchase and service of aged accounts receivables,” Deke said.  “It also confirms that we are delivering on our commitment of adding value to a hospital’s revenue cycle beyond the monetary contributions.”

For example, Deke explained the company provides its clients with, among other things, valuable data on ways to improve its revenue cycle, particularly with respect to monetizing cash flow for delinquent self-pay accounts.  He added that, in particular, the forward flow agreements underscore “the trust our hospital client’s have in our ability to not only bring value to their aged accounts receivable, but also treat their patients with dignity.”

Through the forward flow agreements, ACF Medical Services will inject a monthly positive cash flow into hospitals budgets by regularly purchasing and servicing its aged accounts receivable.  “We think this program completes the final, critical piece of the revenue cycle,” Deke said.

“Hospitals are constantly looking for new ways to not only increase their cash flow, but also reduce the impact of delinquent self-pay receivables,” he explained.  “By purchasing their charged-off receivables, our hospital clients can receive much needed capital and continue their focus of providing better and broader service to their patients.

ACF Medical Services is a subsidiary of Atlantic Credit & Finance, Inc., one of the nation’s leading purchasers and managers of unsecured, consumer-distressed assets, managing in excess of $7 billion. Established in 1996, Atlantic Credit & Finance has been named three times by Inc. 500 as one of America’s fastest growing, privately held companies.