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Kaulkin Ginsberg: Healthcare industry sets aside $129 billion annually to cover bad debt

Research and Advisory Firm Releases Healthcare ARM Report, 2006

BETHESDA, MD: October 2, 2006 – Kaulkin Ginsberg Company, the leading provider of M&A, strategic advice, research, and information for the Accounts Receivable Management (ARM) industry, has released Healthcare ARM Report, 2006.  This research publication describes healthcare receivables management from the perspective of healthcare providers and ARM companies.

This original research concludes that healthcare providers set aside $129 billion annually to cover bad debt — roughly 7 percent of the industry’s revenues, and more than double its average net profits of 3 percent.  As a result, ARM companies that provide healthcare providers with receivables management services have seen increased demand for their services.  The healthcare sector of the ARM industry generated $2.4 billion in revenues in 2005.

“Bad debt may be the most pressing financial problem of the healthcare industry,” said Paul Legrady, Director of Kaulkin Ginsberg’s Research Group.  “This research illustrates how healthcare providers and ARM companies are collaborating to confront this challenge.”

A whitepaper describing the major findings of this research is available, free of charge.   Subtitled “11 tips for improving returns on healthcare receivables,” this 5-page whitepaper provides examples of effective strategies for managing healthcare receivables:

#1: Acknowledge the impact of self-pay patients
#2: Start early
#3: Use different services for different purposes
#4: Negotiate based on price, but only to a point
#5: Benefit from fragmentation
#6: Maintain community reputation
#7: Turn regulatory compliance into a competitive advantage
#8: Borrow some lessons of credit card collections
#9: Consider debt buying
#10: Lean on vendors
#11: Plan strategically

To download this whitepaper, visit www.kaulkin.com/research/publications/hc/.

For more information about the Healthcare ARM Report 2006, call Paul Legrady at 301-907-0840 ext. 104.

About Kaulkin Ginsberg Company
Kaulkin Ginsberg is a diversified strategic advisory, media, and technology company, providing solutions to accounts receivable management and other business services industries since 1989.  Strategic advisory services include merger, acquisition, and valuation advice; research; growth and operational consulting; as well as executive search.  Kaulkin Ginsberg’s Research Group meets the market’s demand for industry-related market intelligence, leveraging our 15 years of industry insight and proprietary data to support industry professionals and investors in their business decisions.  Kaulkin Media publishes CollectionIndustry.com and Credit & Collection Daily, and is the most popular source of industry information.

Read more about Kaulkin Ginsberg at www.kaulkin.com.