CHARLOTTE, N.C.--(BUSINESS WIRE)--Collateral Velocity, Inc., a fintech that provides certain and immediate low-cost liquidity for healthcare organizations while improving banking relationships, revenues and relevance, announced it has closed an investment round and partnered with PMMC.
Collateral Velocity, in partnership with PMMC, combines the power of advanced revenue cycle solutions with a highly sophisticated healthcare finance platform that provides claims payment certainty to maximize reimbursements and maintain financial stability through these challenging times.
The investment in Collateral Velocity will be used to expand the platform's capabilities to support the healthcare spend associated with managed bundled payment programs and enable hospitals and health systems to better address the financial uncertainties of various reimbursement practices by health plans and employers.
“The collaboration with PMMC accelerates our provider payment funding capabilities as hospitals transition from traditional ‘heads in beds’ business models and furthers our mission to improve financial outcomes so health care organizations have more resources to devote to patient care,” said Chris Langley, chief operating officer of Collateral Velocity.
PMMC, the industry leader in claim payment expectancy to improve financial outcomes, provides software and services that enables better financial performance for more than 450 hospitals and health systems. PMMC’s software supports their clients with a 99% calculation accuracy to help them better predict and manage bundled and other claim contract payments.
Robby Shaul, president of PMMC, said the company is collaborating with Collateral Velocity to power the platform to add value to its suite of revenue cycle and contract management offerings that help hospitals and health systems make bundled and managed payments more certain.
“The complexity of health plan contracts adds to the uncertainty and financial challenges,” said Shaul. “National payers make approximately 13,000 policy changes a year each, making it more difficult than ever for providers to achieve payment certainty in the payer arena.”
Collateral Velocity has designed new financial products based on the processing of public or private medical claims associated with value-based and other payor contracts. The company is working with a Tier 1 bank and one of the nation’s largest alternative investment management companies to bring the products to market.
“Providers have a foot in two canoes, with a significant portion of business tied to the old way of getting paid and the rest attached to new, value or bundled payment models,” said Shaul. “Fee-for-service success hinges on healthcare CFOs understanding past performance to maximize revenue whereas value-based care requires a more forward-looking, strategic mindset to get paid.”
Collateral Velocity is a portfolio company of Carolinas Fintech Ventures, LP (CFV), an early-stage venture capital firm specializing in financial technology.
“Hospitals and health systems are facing significant financial headwinds,” said Nat Clarkson, managing partner of CFV. “We’re pleased to support talented entrepreneurs that are making worthwhile breakthroughs in financial technology that can help address such pressing problems.”
PMMC provides high-value revenue cycle software and services to improve the financial performance of healthcare providers. Our software and expertise focuses on payment accuracy and identifying more revenue opportunities across the revenue cycle. PMMC helps hospitals with contract governance, payer negotiations, price transparency, and value-based reimbursement. Clients see, on average, a 10-to-1 return on investment with software and services. For more information, visit www.pmmconline.com