Medical Bad Debt Divestiture:
The RCM Liquidity Protocol

For Health Systems and Physician Groups, uncompensated care is a dormant asset trapped on the balance sheet. The traditional model of endless contingency placement yields diminishing returns and increases brand risk.

Fitzgerald Advisors executes the Strategic Divestiture of Healthcare Receivables. We do not act as a collection agency; we serve as a liquidity partner, converting aged self-pay portfolios into immediate operating capital via private treaty transactions.

I. The Valuation Matrix: Pricing Healthcare Debt

Not all patient liability is equal. We segment and price portfolios based on Payer Class and Age of Placement.

RCM Asset Class	Definition	Liquidity Profile
Balance After Insurance (BAI)	Patient portion after payer adjudication.	Premium Pricing
Primary Self-Pay	Uninsured patients. No prior agency placement.	High Demand
Warehouse / Tertiary	Aged debt (2+ years) or multiple agency touches.	Bulk Liquidation

II. The Compliance Firewall (Brand Protection)

III. Who Acquires Hospital Debt?

We do not place your paper with local collection agencies. We engage Specialized Healthcare Debt Funds. These are institutional buyers with the capital reserves to purchase $10M - $500M portfolios and the infrastructure to manage long-term, low-friction payment plans for patients.

• Target: Immediate cash infusion for the hospital system.
• Outcome: Removal of "Bad Debt" liability from the ledger.
• Benefit: Reduction in internal AR management costs (FTEs).

IV. Regulatory Governance

The transfer of Patient Health Information (PHI) requires a BAA (Business Associate Agreement) level of scrutiny. Fitzgerald Advisors manages the secure data transfer, ensuring full compliance with HIPAA, FDCPA, and Reg F guidelines during the divestiture process.