Alleon Provides $5,000,000 Line of Credit to Four Texas Skilled Nursing Facilities Taking Them Out Of Bankruptcy

Alleon Healthcare Capital (“Alleon”), a specialty finance company focused on providing healthcare accounts receivable financing, medical accounts receivable factoring, and cash flow solutions to medical providers in the U.S., recently closed a $5,000,000 medical accounts receivable line of credit to a Texas Skilled Nursing Facility (“Company”).

The Company operates four skilled nursing facilities in Texas and is focused on the individual who needs healthcare services after his/her hospital stay. Some of the services offered help individuals return home to the community, while others assist those who require care for an extended time. The Company was created to bring an elevated level of service, recovery, and care to rehabilitation and long-term care patients. It is leading the skilled nursing industry towards a model of “healthcare resorts” with highly skilled clinicians and physicians who successfully rehabilitate and restore patients to a condition of good health.

The facilities are located in Seguin, Fort Worth, Dallas, and Carrolton with over 207,853 square feet and a total of 505 patient beds. The Company employs 574 employees, including 244 licensed nurses and therapists, and 8 corporate level employees. It has contracts with 10 medical directors and 13 admitting physicians and has relationships with numerous referring physicians from dozens of acute care referring hospitals. In 2017, the company averaged 324 patients per day, and generated approximately $28 million of revenue resulting in approximately $1.1 million of Adjusted EBITDA.

In 2018 due to financial hardships and unforeseen events the company was forced to file for Chapter 11 bankruptcy.  Alleon was able to help the Company restructure by paying off its current lender using an asset based line of credit. The line is comprised of medical receivables due from government and commercial health insurance payors with an advance rate up to 85% on eligible receivables.

“We are extremely proud to have helped our client restructure its company and come out of bankruptcy. They are a vital piece of the community and do great work in assisting thousands of people yearly.” said Ben Malyar, V.P. of Business Development at Alleon. He added, “We excited to be a part of the companies continued growth.”