How financing worked

How financing worked

Here is how National Century Financial Enterprises arranged financing with health care firms:

National Century loaned millions of dollars to cash-hungry health care firms and hospitals. In turn, the health care firms gave National Century control of their insurance claims and medical bills.

The health care firms used the cash to run their businesses, and also paid fees to National Century.

National Century used the insurance claims as collateral to issue billions of dollars in bonds to Wall Street investors.

National Century used the proceeds from the bond sales to buy more insurance claims from medical firms.

Sources: USA TODAY research, National Century