Structuring a sound securitization of healthcare receivables.
Securitization of receivables allows healthcare providers to obtain an additional funding source by selling their accounts receivables to investors. A double-lock-box structure allows providers to securitize Medicare and Medicaid receivables without violating federal laws. A 2001 revision to the Uniform Commercial Code facilitates providers' securitization of private healthcare insurance receivables by underscoring rights of a purchaser of those receivables. HIPAA privacy standards appear to permit the use and disclosure of protected health information in crafting a securitization program. The securitization should be structured to shield the value of the receivables to be transferred from the potential backruptcies of the originator and the purchaser.
Spradling
Mark
M
Vinson & Elkins LLP, Houston, USA. mspradling@velaw.com
D000066:Accounting / Q000379:methods / Q000592:standards; D000067:Accounts Payable and Receivable; D000206:Actuarial Analysis; D016361:Bankruptcy; D002202:Capital Financing / Q000331:legislation & jurisprudence*; D020408:Health Insurance Portability and Accountability Act; D007349:Insurance, Health, Reimbursement / Q000331:legislation & jurisprudence*; D007449:Investments / Q000145:classification / Q000331:legislation & jurisprudence; D008484:Medicaid; D006278:Medicare; D012637:Security Measures / Q000331:legislation & jurisprudence*; D014481:United States