Family office investments in the medical receivables industry are at an all-time high, with 35 percent of wealthy families reporting that they either are already invested or seeking to invest in the sector, reports Family Office Networks, a community of 10,000+ global family offices.
As background, the U.S. personal injury claim market is estimated at $35-40 billion annually, which is largely due to an inefficient healthcare system, often exploited by insurance companies, and this results in a great number of victims awaiting urgent treatment. Medical receivables companies enable victims to receive expedited treatment, at heavily discounted rates, in return for advance payment of fees to medical service providers. There are a select number of companies that are open to providing the financing to make this possible.
Medical receivables companies have extensive networks of service providers, including surgery centers, MRI and pain management centers, and pharmacies, as well as networks of attorneys who refer injured parties. In return for financing, the medical receivables companies are willing to pay a higher rate of interest or split backend profits on the collections.
For family offices interested in accessing this fast-growth investment opportunity, HedgeACT is an example of one fund that is open to investment. It lends money to medical receivables companies at an agreed-upon rate, plus fees, for loans to be repaid in a set time period. Investors receive mid-high teen returns with little or no market correlation.
“The key to our success in generating attractive investment returns for our family office clients has historically been our ability to source hard-to-fund unique managers. Our team has many years of high-level experience in alternative investments so we’re knowledgeable of what family offices require. Our ability to help providers get paid and the victims out of debt generates strong investor returns – it’s a win-win for everyone,” said Christopher Stewart, Hedge ACT’s Director of Business Development.
For information on HedgeACT, visit HedgeACT or contact Christopher Stewart at [email protected]