Health Care Network Associates, LLC
Experts in Accessing Capital for Health Care Providers
HomeWho We AreWhat We DoCase StudiesFAQsAsk Matt & David
 
 

A health care provider's capital structure impacts all aspects of its operations. Access to capital is imperative for meeting strategic plans and implementing new programs. The cost of debt reduces the financial resources available for patient care. Debt covenants limit the options available for implementing new initiatives.

We at HCNA offer advisory services to assist with accessing capital in ways consistent with the provider's mission and strategic objectives. We consider ourselves members of the provider's team, and are responsible for helping to carry out its mission. This perspective guides the analyses and recommendations we provide. We provide assistance in four major areas:

  • Development of a capital formation strategy
  • Minimization of debt service and release of restricted reserves
  • Management of the debt issuance process
  • Negotiation of debt terms and covenants

Capital Formation

HCNA assists providers in determining the best method for funding capital projects. If the source of funds is the incurrence of new debt, HCNA assists its clients with the following services:

  • Identifying the security available to obtain and service the debt
  • Analyzing the type of debt that best meets the provider's objectives
  • Analyzing the financial impact of the debt on the organization
  • Identifying potential lenders or guarantors of the debt
  • Preparing an information package for potential lenders or guarantors
  • Coordinating the activities of the financing team

Debt Service Minimization/Release of Reserves

In periods of low interest rates, it is frequently possible to reduce existing debt service. For each of our clients, we examine the existing debt structure for opportunities to reduce debt service. We make recommendations for debt refinancing and restructuring, as well as examining the balance sheet and legal documents for cash reserves that may be released.

Management of the Debt Issuance Process

Incurring debt, especially tax-exempt debt, is a complicated undertaking. HCNA manages the debt issuance process for its clients by providing the following services:

  • Preparing and submitting applications to the relevant governmental agencies
  • Monitoring the processing of applications and assisting in negotiations and reviews
  • Assisting in the preparation of the legal documents that secure the debt
  • Assisting in the preparation of the disclosure document
  • Preparing and/or reviewing the debt sizing analysis
  • Assisting in the selection of an investment banking firm, if bonds are to be issued, and participating in the negotiations.

Negotiation of Debt Terms and Covenants

Debt covenants have an important impact on the operations of a health care facility. HCNA assists in negotiating the terms and covenants for the debt, with a special focus on how the covenants will impact the ability of the health care provider to implement its mission and strategic plans.

HCNA speaks the language of providers and lenders. We at HCNA use our many years of experience to coordinate all aspects of the debt issuance process.

 

 

 
 
Site by Virtual Arts StudiosLegal Disclaimer