Mr. Kennedy shared some best practices for hospitals looking to access capital.
1. Know what you can fund with the finances you already have. “Some cash will often need to be part of the deal,” Mr. Kennedy said. “Balance is key for hospitals of all sizes.”
2. Combining options can customize debt. “Keep your options open, things change, and playing that to a hospital’s favor is key,” said Mr. Kennedy.
3. Keep an eye on federal activity for new or changed financing options. The Federal Housing Administration’s Section 242 Hospital Mortgage Insurance Program is an example of one of those changes, according to Mr. Kennedy.
4. Multi-track financing to stay flexible and save time.
5. Use an investment bank that has access to all options.
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