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Kaulkin Ginsberg: $3 to $4 Billion in Healthcare Debt Portfolios Sold in 2005

Strategic Advisory Firm Releases Findings from Healthcare ARM Report

January 25, 2007: BETHESDA, MD - Kaulkin Ginsberg Company, the leading provider of M&A services, strategic advice, research, and information for the Accounts Receivable Management (ARM) industry, has released findings from its recent research publication, Healthcare ARM Report, 2006. An executive brief containing some of these findings will be released in February.

According to Kaulkin Ginsberg, healthcare providers set aside $129 billion annually to cover bad debt, which amounts to roughly 7 percent of industry revenues.

Despite the pressures to recover this debt, the publication finds that the amount of healthcare debt that is sold to debt purchasers is still relatively small. According to the research, of the estimated $110 billion in face value of delinquent debt purchases that took place in the United States during 2005, less than 4 percent 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. Kaulkin Ginsberg’s research suggests that the average price of a healthcare debt portfolio ranges from 0.25 percent to 5 percent of face value, with an average between 1.5 percent and 3 percent.

A copy of the executive brief, Healthcare Receivables Management: Strategic Data on a Growing Market, will be available free of charge on the Research section of insideARM.com in early February '07. 

About Kaulkin Ginsberg Company
Kaulkin Ginsberg is the leading strategic advisor to accounts receivable management and related business services companies, helping owners and executives succeed in their efforts to analyze, grow, or exit their businesses. Services include merger, acquisition, and valuation advice; market research; debt purchase and sales advice; operational consulting; and executive search. Kaulkin Ginsberg's media division publishes the most popular sources of timely industry information such as insideARM.com(TM) and The ARM Insider(TM). Kaulkin Information Systems provides secure, affordable document management and workflow systems. Read more about Kaulkin Ginsberg at www.kaulkin.com.