Category: Articles

2016 M&A activity down from last year

By: Alyssa Rege (Becker’s Hospital Review, January 20, 2017) While hospital merger and acquisition activity fell during 2016 compared to the year prior, announced transaction activity in Q4 increased from the previous quarter, according to an analysis by Ponder & Co. Click here to read the full article

Health Care 2020 – Report 3 of 4 Consolidation

By: HFMA and contributors, including Eb LeMaster (HFMA online) The healthcare industry will continue to see rapid consolidation as key sectors assert the need to seek the economies of scale and efficiencies they claim are required to succeed in the era of value-based care, delivery, and payment. That is the conclusion of Health Care 2020: Consolidation, … Continued

Timing Tax Exempt Bond Refundings

By: Jeffrey B. Sahrbeck (HFMA September 2015) Selecting the optimal time to refund tax-exempt bonds can significantly enhance a healthcare organization’s economics, but is dependent on both market factors and timing. Unlike in the taxable world, where bonds are generally non-callable to maturity or include a make-whole call where there is no economic benefit to refunding, … Continued

Confronting Reluctance to Seek a Strategic Partner in Health Care

By: Julian R. Head (HFMA June 2015) Asking the right questions can help independent hospitals face up to whether they need a strategic partner to address capital or other needs. Independent hospitals serve a vital role in their communities. In many cases, they are the best or only provider in the area, and their commitment … Continued

‘Capital Ideas’ for Health Care in 2015

By: Christopher T. Payne (HFM May 2015) Hospitals and health systems should consider several important factors related to tax-exempt borrowing as they seek vital funding sources for this year. Pressures never have been greater on healthcare providers and their operating margins. Indeed, a lack of profitability for some providers is expected to lead to further … Continued

Is Hospital M&A Waning

By: Eb LeMaster and Jake Aygun (HFMA January 2015) The number of announced hospital mergers and acquisitions (M&As) dropped significantly in 2014 from prior years, and volume for the full calendar year 2014 will likely be the lowest since 2009 (see the exhibit below). As we detail, there are several major trends that affect these … Continued

The Value of Variable Rates in a World of Low Rates

By: Jeffrey B. Sahrbeck (HFM January 2015) In February of 2008, the municipal industry (and specifically not-for-profit health care) found itself at the epicenter of the credit crisis, with auction bond failures, sizable investment losses, and derivatives causing massive collateral-posting requirements. As the industry scrambled to refinance hundreds of billions of dollars in debt and … Continued

Today’s Trends in Capital Financing

By: Gerry A. Means and Marcelo L. Olarte (HFM May 2013) Introduction: Funding for capital projects is readily available to health systems of all sizes in 2013, but providers should conduct risk analyses before moving forward. The year 2012 saw not-for-profit health systems continuing to review their capital structures and find ways to finance needed … Continued

Understanding Your Capital Options

By: Christopher T. Payne (HFM May 2012) Introduction: As hospitals and health systems plan capital spending that requires financing, they should carefully weigh all their options. Despite long-term interest rates returning to near-record lows after an increase early in 2011, uncertainty about healthcare reform and future funding for Medicare and Medicaid coupled with concerns about … Continued

Tax-Exempt Bank Loans Still an Option

By: Grant Ostlund and John E. Cheney (HFM July 2011) Introduction:  Over the past two calendar years, commercial banks have been a significant source of tax-exempt financing for healthcare organizations. Driven by an expanded definition of “bank-qualified debt” provided in the American Recovery and Reinvestment Act of 2009, commercial banks issued approximately $70 billion of … Continued