Blue Elephant Capital Management is backing Remote Care Partners, provider of a cloud-based platform for population and remote care program management, with financing for healthcare providers that want to use the company’s devices.
The 12-month financing option is expected to help RCP generate an $900 million in incremental revenue and $500 million in net revenue for its healthcare partners.
“Our business is to help healthcare providers adopt remote care management easily and without upfront investment thereby accelerating rapid adoption to improve patient health outcomes and reduce healthcare system costs,” said Gregg Smith, CEO of RCP. “Our partnership with Blue Elephant enables healthcare providers to generate positive cash flow beginning with patient one in month one.”
Because Medicare does not provide upfront reimbursement to healthcare organizations for these remote care medical devices, paying for the capital investment can be an obstacle to adoption. The Blue Elephant/RCP partnership covers 100% of equipment costs.
RCP said its healthcare partners average more than $150 per month in gross revenues per patient and almost $100 per patient in net revenues after paying for RCP services and the equipment financing. At the end of the 12-month financing period, net monthly revenues are expected to increase by over $20 per patient to almost $120 per patient per month.
“By providing a complete solution that includes financing for devices and systematic patient onboarding, RCP has resolved a key issue for their healthcare providers,” said Kent MacWilliams, senior portfolio manager at Blue Elephant.