Helps Healthcare Providers Mitigate Risk, Optimize the Capital Structure, Improve Access to Funding
TAMPA, Fla.--(BUSINESS WIRE)-- In a recent survey, one third of healthcare executives reported they were unprepared to deal with risk, and listed cash flow/liquidity as one of the top three risks they face along with health reform and increased competition. Hospitals and healthcare providers are specifically concerned about the growing risks that affect their debt, swaps, investments, ratings, and access to funding.
In response, HFA Partners, LLC, a healthcare financial advisory firm, has introduced FIRM360, a unique analytical tool to help providers identify, quantify, mitigate and monitor the internal and external financial risks embedded in their capital structure.
“The Lehman bankruptcy, the collapse of bond insurers, and the auction rate meltdown have all demonstrated that a hospital’s capital structure can hide significant risks,” noted Pierre Bogacz, a former healthcare investment banker, management consultant and co-founder of HFA Partners. “Until now, the tools weren’t around to identify and measure these risks, so they couldn’t be properly factored into the capital and strategic planning process.”
“FIRM360 is unique in that it combines a sophisticated stochastic risk analysis model with proven enterprise risk management (ERM) methodology already embraced by many hospitals in the patient safety, technology, human capital and regulatory sectors,” added Chris Rea, CFA, co-founder of HFA Partners. “Providers can now identify financial risks, quantify their probability of occurrence and magnitude of impact, define organizational risk appetite, evaluate alternatives to mitigate risk, and put procedures in place to monitor the capital structure on an ongoing basis.”
“FIRM360 enables providers to adjust their capital structure to match their risk appetite and minimize the cost of capital,” said Bogacz. “Everybody wants to control risk and reduce uncertainty, including of course the rating agencies that rate bonds and directly impact the cost of funds. Nobody likes surprises, particularly of the type we’ve experienced in the last couple of years.”
FIRM360 rounds out HFA Partners’ other healthcare financial advisory services, which include transaction structuring, credit rating strategy, and capital market consulting.
HFA clients include Cape Cod Healthcare, a $600 million hospital system, Wellmont Health System, an 8-hospital system, and Physicians Practice Group, the academic faculty practice plan of the Medical College of Georgia.
For more information, please visit: http://www.hfapartners.com.
HFA Partners, LLC
Pierre Bogacz, Managing Director, 813-347-9150 ext 220
KEYWORDS: United States North America Florida
INDUSTRY KEYWORDS: Technology Software Health Hospitals Professional Services Finance Managed Care