1. Ensure that the hospital’s management team and board remain actively engaged throughout the
debt financing and/or partnership exploration and transaction processes.
2. Ensure that financial and other advisors explore the full range of available capital options.
Implications for Smaller Hospitals
It is particularly important for management teams of smaller hospitals to be closely involved with
financing strategies that include funding from state or local governments or from philanthropic sources.
Maintaining strong relationships with these sources can help maximize the capital received and manage
its structure and timing.
The stakes are high. Whether hospitals are strong or not so strong, their executives cannot afford to
take a wait-and-see approach to capital access. To ensure capital options in the new health care
environment, leadership teams must understand available options for accessing external capital. Doing
this requires that they be committed to building an in-depth understanding of their current strategic and
financial position, preserving the strength of their credit position, identifying and evaluating the broadest-possible funding sources, securing the best-fit options through involving the right experts, and staying
closely connected to their capital position by monitoring existing funding and new opportunities.
Winning organizations will take a proactive approach.
A Guide to Financing Strategies for Hospitals Executive Summary