In the past, health leaders could usually generate the capital they needed through bond offerings or getting standard bank loans, but of late, that just hasn't been a possibility. The bond market is in tatters and banks, well, most of us know what they're up to these days--trying to stay alive themselves--so they aren't exactly generous lenders. Countless hospital and health facility capital projects have been slowed down or canceled for want of funding, even as the economy begins to get on its feet.
What's a healthcare organization to do? Well, as ANI sessions suggest, it's time to look for "alternative financing sources" rather than keep hoping a reasonably-priced bond opportunity, revolving debt or letter-of-credit, will materialize.
At the show, you may not hear anything revolutionary, but you're likely to find out that you do have some options you might not have considered. Keep an ear cocked for practical information on options such as FHA-backed hospital mortgages, selling and leasing back medical office buildings. Any stories about how colleagues have refinanced existing bond debt and freed up cash would be nice, too.
All told, financing capital projects is still an extremely tricky undertaking, but if you're going to learn anything new, ANI is definitely the place to do it.