Healthcare Bad Debt

(To see a complete executive summary, click here)

U.S. healthcare is enormous, representing one in every six dollars spent and is still growing.
Part of this growth has a heightened industry problem: more bad debt.
Healthcare providers are now partnering with companies that specialize in the collection of delinquent receivables, which has created good opportunities for companies that provide healthcare providers with receivable management.
Threats to success of healthcare providers and receivables management companies include downward movement in prices, increased competition, and regulatory threats.

Interesting Statistics

The healthcare sector of the accounts receivable management generated $2.4 billion in revenue in 2005
Healthcare providers set aside $129 billion annually to cover bad debt, which amounts to roughly 7% of the industry's revenues and more than double the industry's average net profits of 3%
U.S. healthcare spent $2 trillion in 2005