A healthcare system’s investment structure is intentionally aligned to match varying enterprise needs over the short, intermediate, and long term. Most have gravitated toward the use of tiers—pools of capital delineated as available immediately (operating cash), within the next few years (short-duration bonds), or strategically over time (long-term investment pools). However, the need for capital […]
March 2023
The COVID-19 pandemic financially shocked healthcare system enterprises and investment portfolios, but those shocks were short lived and the recovery was swift. In fact, by the time 2021 ended, many hospitals were in a stronger financial position after the positive impact of stimulus funding, stabilizing operational results, and substantial investment gains. But challenges still exist. […]
July 2022
During the past decade, nonprofit healthcare providers have undergone a wave of accelerating consolidation. When systems combine, the new entity created will have new financial health metrics. A fresh review of how a transaction will impact the newly combined long-term investment pool (LTIP) is crucial. This paper examines key variables to assess and specific examples of how a LTIP might restructure post-merger.
April 2021
Healthcare systems appear to have navigated the most severe financial impact of the pandemic. We believe the present time provides an opportunity to reset investment strategy and recalibrate portfolios as necessary.
January 2021
In this segment, Jeff speaks about the importance of liquidity for healthcare systems in the wake of the COVID-19 pandemic and how he guided clients during the market downturn in March and April. He goes on to discuss the present state of the industry and what he believes will be the long-term implications of the crisis.
September 2020
Before COVID-19 most hospitals generated liquidity from their operating model. In our May 2020 survey of 27 hospital systems, we learned that COVID-19 has driven hospitals to search for liquidity from multiple sources, including, for some, the investment portfolio.
June 2020
April 8, 2020—The COVID-19 pandemic has inflicted significant duress upon the operational and financial situations of nonprofit healthcare systems. An immediate response was necessary to escalate staffing, spending, and resources to provide emergency treatment to those affected by this highly contagious outbreak.
April 2020
Healthcare systems can benefit greatly by maximizing equity orientation and illiquidity while prudently managing risk. But a typical healthcare system may have investment assets in multiple accounts, due to mergers & acquisitions (M&A), capital projects, and fundraising, as well as operational and pension benefit growth. Investments can be curated—identified, categorized, and clustered—for optimal efficiency and cost savings. Similarly, defined benefit pension plans can be restructured to better manage pension risk and administration. This paper discusses strategies to simplify and streamline investment structures to make complexity more manageable for investment and financial executives.
March 2020