Patients trust you with their lives every day, but why should investors trust you with their money? For a hospital, the decision to issue bonds is almost never an easy one. Debt service can be a frightening prospect when operating revenues have already proven insufficient for funding growth plans.
When a new bond issue is on the table, tough questions far outnumber easy answers: How will the market respond to your offering? Can you raise the money you need at a reasonable interest rate? Will growth occur quickly enough to cover your obligations?
At Ascendient, we believe that a bond/debt feasibility study is only as good as the strategy on which it is based. In our feasibility work, we leverage two decades’ worth of experience in strategy and planning to ensure that growth numbers are realistic and achievable under multiple market scenarios. We integrate operational plans with long-term capital needs to provide a comprehensive view of your overall financial picture – both now and in the future.
The bond/debt feasibility process can be arduous, but it is also invaluable. As industry dynamics continue to change, ratcheting up the financial pressure on hospitals, rating agencies and bond insurance companies are expected to place greater weight on third-party feasibility studies when evaluating the viability of a project or organization.
Looking to lighten your current debt load rather than take on a new bond issue? Please read how FHA loan insurance can reduce interest payments and ease cash flow by relying on the full faith and credit of the U.S. government.
For more information, please contact Brian Ackerman at 240-776-4752.