theinvestor22 wrote: I can't help but bring everyone's attention to a posting over on CEO.ca from @Sailorman which adds some very important colour to our understanding of what's going on re collections. Here is that post in bold, followed by a comment from me...
On collections, I had an exchange with Scott from Reliq IR, and below is his reply to the speculation I posted here on July 31st (https://ceo.ca/@sailorman?b9d8518df2ca). If we bear in mind that these are, largely, smaller-office single-physician practices, it may well be understandable that many are having difficulty catching up on one or two years worth of back invoices. But, valid or not, for me the more important take-away is that these same clients are “paying their existing bills”. This, combined with greater predictability on a number of fronts (including collections) that the larger clients are said to be providing, leads me to believe that much improved traction in cash flow metrics is looming.
Here is the reply:
Hello xxxxxx:
The clients are being reimbursed for eligible services provided. Any revenue that Reliq books is eligible for our clients to be reimbursed for. Clients would let us know if they are having any issues with reimbursement since they consider us experts in that area and we generally train their staff that do billing.
As the Company has stated multiple times, individual physician practices are very slow to pay and require reminders and a collections team following up, which Reliq did not put in place until January. These clients are paying their existing bills and catching up on a year or two of past billings.
Best Regards,
Scott
Scott Fitzgerald
Investor Relations
Reliq Health Technology, Inc.
It seems to me that Scott has provided a couple of important pieces of the puzzle. One, he's stating that clients are having no difficulties with their CMS reimbursements and, two, that "clients are paying their existing bills" which indicates the slowness is in the catch up from years gone by. If that's the case, then Reliq's system is working just fine thank you very much. We all still want collections confirmation, but this is good news IMHO.