In the latest edition of Raven Health’s ABA Startup Success 101 series, Tim Crilly sits down with Ethan Schwarzbach, Co-Founder and CEO of Flychain, to discuss the critical role of financial management in ABA practices. This partnership between Raven Health and Flychain equips ABA practitioners with the tools and insights to manage their finances effectively, allowing them to focus on their clinical mission. Watch the full webinar here: https://behaviorlive.com/courses/raven-health-presents-aba-startup-success-101-unlocking-capital-to-fuel-your
The Importance of Financial Management
Tim begins by addressing the often-untold challenge of running a practice: the need for solid financial management. Without it, practices struggle to maintain operations, pay employees, and pursue their mission of helping families. Ethan, with his background in finance and lending, founded Flychain to tackle these challenges within the behavioral health space.
Revenue Cycle Management (RCM): The Lifeblood of Your Practice
A key part of the discussion is on Revenue Cycle Management (RCM), which Ethan describes as the lifeblood of fee-for-service businesses like ABA practices. RCM encompasses the entire billing process, from submitting claims to receiving payments. Without a strong RCM system, practices may experience delayed reimbursements, leading to cash flow problems. Flychain helps practices bridge cash flow gaps by offering advanced payments on insurance claims, ensuring they can cover operating expenses and maintain continuity of service delivery while waiting for reimbursement payments.
Capital Planning: Preparing for Growth
Ethan highlights the importance of capital planning, especially in a practice’s early stages. He explains that the first year is the toughest, as small businesses have limited access to traditional forms of capital. Flychain helps unlock funding options at every growth stage, starting with Advanced Payment on Claims to improve cash flow in the early stages. As practices grow, Flychain offers additional capital support, including Lines of Credit, Term Loans, and SBA loans, ensuring ABA providers have the necessary resources to overcome financial hurdles and drive long-term growth. Ethan advises new owners to plan their capital needs early to overcome initial financial hurdles and support growth.
Bookkeeping and Accounting: The Foundation of Financial Health
Flychain offers full-service accounting and bookkeeping tailored specifically for healthcare providers, particularly ABA practitioners. Ethan stresses that maintaining clean, accurate financial records is vital from day one, as they are crucial for securing loans, managing expenses, and eventually selling the business. Flychain helps ABA providers focus on delivering care by handling their financial management needs.
Final Thoughts
The webinar concludes with a discussion on equity, debt, and the need for ABA business owners to understand these concepts as a business owner. Both Ethan and Tim emphasize the need for ABA practitioners to educate themselves about financial management, as it is integral to the success and sustainability of their practice. The partnership between Raven Health and Flychain represents a significant step forward in providing ABA practices with the financial tools they need to thrive.
Flychain’s partnership with Raven Health offers ABA practices the chance to streamline financial operations and secure the capital necessary for growth and continued service to their communities.
Interested in learning more? Watch the full webinar below.
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