Healthcare providers set aside $129 billion annually to cover bad debt, which amounts to roughly 7 percent of industry revenues. This is one of the landmark findings of a recent study released by Kaulkin Ginsberg, the leading provider of M&A services, strategic advice, research, and information for the Accounts Receivable Management (ARM) industry.
Despite the pressures to recover this debt, a relatively small amount is currently sold to debt purchasers. According to the research, less than 4 percent of the estimated $110 billion in face value of delinquent debt purchases in the United States in 2005 was healthcare debt. Kaulkin Ginsberg anticipates the healthcare debt buying marketplace will grow, however, as healthcare providers increase their willingness to sell portfolios and debt buyers compete for them. Prices of healthcare portfolios have increased in recent years, giving some healthcare providers added incentive to sell debt portfolios.
View this content by subscribing
Please register to unlock this content
I already have an account. Log in
