News Release-- December 08, 2008
GLOBEFUNDER LAUNCHES NEW PATIENT LOAN AND FLEXPAY PROGRAMS
Kalamazoo, Michigan: GlobeFunder Ventures, Inc. today announced the launch of two new innovative financial service programs to help the nonprofit sector of the healthcare industry deal with the rapidly growing problem of unpaid patient medical receivables. More than 50% of patients with inadequate or no insurance have open unpaid balances. GlobeFunder's Hospital Sponsored Loan Program (HSLP) and their FlexPay Account Receivable Stimulus Program (FlexPay) are intended to be creative and compassionate methods of working with patients to lift their financial self-esteem and reward them for their voluntary repayment.
"The patient's desire and effort to repay according to their means is much more important than adherence to an artificial or unrealistic amortization schedule," said Brian Mullally, President of GlobeFunder. "We respect and appreciate every patient who has a desire to do the right thing, and we work side-by-side with them through their financial challenges."
Richard Zizian, Chief Lending Officer of GlobeFunder, states, "There is an inherent conflict between the mission and the books within the nonprofit sector of the healthcare industry. Nonprofit healthcare providers are conflicted with their mission of caring, charity and compassion for all patients versus the necessary disciplined financial management of limited resources in a time of rising healthcare operating costs and economic uncertainty.
Our FlexPay Program is a better way for these healthcare providers and patients to work together to repay medical bills with increased cooperation and preservation of dignity."
The GlobeFunder HSLP and FlexPay programs are supported by CSC's (NYSE: CSC) industry-leading financial services technology and portfolio servicing platform. CSC, a leading global information technology (IT) services company, is providing the technology, people and service expertise to support these unique programs. CSC will offer patients a variety of channels to make payments, continuous access to account information, payment due date options and customer care associates who can work with the patients should an unexpected event interrupt their original repayment plans.
"Flexibility is key in allowing patients to choose how they can best repay their obligations and in rewarding them for their repayment," said Deborah Hargrove, Director of Business Process Outsourcing for CSC's Banking Division. "For more than 40 years, CSC has successfully designed and managed innovative programs to help clients improve repayment options and reduce unpaid receivables."
The growing trend for hospitals to enhance revenues by employing more aggressive tactics to collect unpaid medical bills from patients, is stirring strong debate and conflict among medical providers today. Many healthcare providers use collection agencies, sell their patient accounts to debt recovery firms, issue medical credit cards with high interest rates and take patients to court for unpaid hospital bills, all to improve hospital earnings. However, these tactics also inflict damage on the patients' credit record and can threaten their long-term relationship with their healthcare provider. The FlexPay Program is a new way for healthcare providers and patients to work together to settle medical bills. The HSLP loan program is designed to keep patients out of the unpaid category in the first place.
About GlobeFunder: GlobeFunder is an innovative provider of loan origination, servicing and portfolio administration technologies and services, working with leading companies and organizations in financial services, healthcare, retail, security, manufacturing and distribution.
About CSC: CSC is a global leader in providing technology-enabled solutions and services through three primary lines of business. These include Business Solutions & Services, Global Outsourcing Services and the North American Public Sector. CSC's advanced capabilities include systems design and integration, information technology and business process outsourcing, applications software development, Web and application hosting, mission support and management consulting. Headquartered in Falls Church, Va., CSC has approximately 91,000 employees and reported revenue of $17.3 billion for the 12 months ended Oct. 3, 2008. For more information, visit the company's Web site at www.csc.com.
