Ten Questions You Should be Asking
With the transformation of the healthcare industry continuing from Curve One to Curve Two, questions arise for many healthcare providers and their stakeholders as to what to do with existing facilities -- should they be expanded, re-purposed, modernized, or should an entirely new facility be built?
Whatever the decision reached, healthcare providers will need access to capital markets, and with that access comes heightened scrutiny of business plans. This scrutiny places significant pressure on hospital management teams, relative to their experience in, and approach to, managing the significant risks associated with large capital spend projects.
Healthcare providers, who are successful in obtaining affordable financing, will be those with the most solid credit profile, business plans, risk mitigation plans, and the management teams responsible for developing and managing them. Capital sources will want evidence that providers have a solid track record of being good stewards of their financial resources — and that starts with diligently ‘planning the work and working the plan.’”
Healthcare Real Estate
Here are 10 critical questions hospital executives should be asking internally before seeking commitments for capital:
To summarize, hospitals that have well-conceived project-specific business plans that include realistic project budgets, schedules and an overall risk mitigation strategy are more likely to attract capital. Hospitals that bring forth fragmented plans will find themselves in a less creditworthy position.