Lancaster Pollard has published a white paper, Financing Options for Large Nonprofit Hospitals and Multi-Hospital Systems, available for download here.
This paper is designed to demystify several long-term financing options for large hospitals and multi-hospital systems and describe the advantages and disadvantages of each. First, this paper outlines the relationship between a system’s strategic plan for future operations and its financial plan. Then, traditional and alternative capital funding options are discussed.
In addition, this paper highlights the critical role financial risk management plays in a hospital's financial plan. The funding of a system’s growth through the most appropriate financing means helps ensure the proper maintenance of a system’s capital structure. A strong capital structure is at the foundation of a system's credit strength, and as such, critical to the ability of a system to optimally fund organizational growth, drive profitability, and deliver enhanced health care services.
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