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Digital Lending Services Provides $30MM ABL Facility to Lucid Medical Management

June 25, 2018, 07:02 AM
Filed Under: Medical

Lucid Medical Management, LLC, through its wholly-owned subsidiary Exclusive Provider Network, has secured a $30,000,000 asset-based loan from Digital Lending Services (DLS), an alternative lending institution. FocalPoint Partners, LLC served as exclusive investment banker to Lucid Medical.

Texas-based Lucid Medical is an injury management organization managing end-to-end health care for personal injury, self-insured Workers’ Compensation and U.S. Veteran patients. Shawn De La Garza, Founder and CEO, is a U.S. Veteran who pioneered the development of specialized diagnostic imaging services (e.g., full range-of-motion, “asymptomatic” MRIs) to identify injuries often missed with standard “symptomatic” MRI procedures. Over time, Mr. De La Garza recognized the need to take a more comprehensive role across the entire continuum of care. Lucid Medical's proprietary provider network, medical records portal, robust patient intake protocols, treatment utilization standards, and specialized revenue cycle management capabilities are key ingredients that materially improve quality of care for these patient populations. The credit facility with DLS solved the remaining barrier, a lengthy provider collection cycle generally coinciding with case settlements.
Regarding the transaction, Shawn De La Garza commented, "James skillfully maneuvered Lucid Medical and all our affiliated companies through hundreds of possibilities and found the correct fit, therein funding our growth at the lowest cost of capital with no equity dilution. Despite all the challenges, FocalPoint did what no one else could."

The innovative asset-based lending structure is specifically designed to accelerate network provider reimbursement, thereby granting expanded access to first-rate providers while encouraging greater coordination of care across Lucid Medical's network. Establishing a credit facility with a value-added, institutional lender enables the Company to lower its cost-of-capital while providing runway to execute its multi-state growth plan.  

James Castro, Managing Director at FocalPoint, commented, "Playing a meaningful role in bringing high-quality and coordinated care to underserved patient populations is central to FocalPoint’s dedicated healthcare practice. Lucid Medical serves as a prime example of the type of transformative business models we take pride in supporting."

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