1. Medical Cash Flow Management US LLC
Fredrick C. Lane MD FACS
Chairman and CEO
301 N. Main Street
Winston Tower
Suite 2420
Winston-Salem, NC
C F M

2. Business Problem
• Much of the national healthcare financial crisis comes down to local cash flow.
• Providers generate Medicare and other insurance claims when they treat patients.
• Payment can take 90 days or more.
• Claims are difficult to value (time, amount)
• Traditional receivables funding can be expensive.

3. Financial Pressure Increasing
“Medicare inpatient reimbursement rate cuts … threatening to affect borrowing costs…”
“…Medicare accounts for 44 percent of the revenue of Moody's rated not-for-profit hospitals”
“The easy costs are out of the system and they're having to dig deep”
Source: Modern Healthcare Jan

4. Access To Capital • Healthcare bond issuances in 2014 fell 16%
• BBB vs AA = $850M additional interest
• AA rating requires 7% margins or higher
• Perhaps 1/3 of hospitals can access the public market
• Largest liquid asset – high quality AR –
not well employed nor fairly valued
by either banks or Wall Street

5. The CFM Solution • Precisely predict reimbursement timing and amount.
• Use electronic XML liens to give lenders a perfected interest
• Base financing on the credit of the Payer
• Support both collateralized bank loans and Asset Backed Securities
• Maximize Collateral Value
• Minimize Providers’ cost of funding.
Next Step

6. Claims Valuation Analysis
• Historical Claims and Payments
• HIPAA 837 and 835 Transactions
CFM Valuation Algorithm
In-depth valuation of reimbursement
timing and amount
to set
initial advance rate.

7. Medical Cash Flow Management US LLC
Fredrick C. Lane MD FACS
Chairman and CEO
301 N. Main Street
Winston Tower
Suite 2420
Winston-Salem, NC
C F M