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Hospitals Get Cash Faster with HealthRail
20 Oct
Summary
- HealthRail offers expedited access to hospital revenues.
- It targets payment delays from insurers and public programs.
- This boosts hospital liquidity by lowering sales outstanding days.
HealthRail, developed by Plunes Healthcare, is introducing a fintech infrastructure to accelerate hospital cash flow. The system provides expedited access to accrued revenues, specifically addressing the significant payment delays hospitals face from insurance providers and government funding programs.
This initiative aims to bolster hospital liquidity by substantially lowering days sales outstanding for eligible receivables. Hospitals often experience lengthy gaps between delivering patient care and receiving payments, which can tie up crucial working capital needed for salaries, medicines, and operations.
In India, where health insurance claims and government-scheme payments are substantial—with over 3.26 crore health insurance claims settled and approximately ₹1.19 lakh crore authorized under Ayushman Bharat in FY2024-25—these delays are a major concern. HealthRail estimates that days sales outstanding for government-scheme receivables can reach four months, with a goal to reduce this to as little as two days for qualifying receivables.
By partnering with banks like Punjab National Bank and Axis Bank, HealthRail offers structured financing for hospital receivables. This aims to provide quicker access to working capital, improve cash-flow visibility, and enable smoother expansion, better supplier relationships, and a more resilient balance sheet for healthcare providers.
