Many hospitals, especially those in smaller communities, often cannot access the capital necessary to make critical renovations and upgrades. Although profitable, many rural hospitals do not meet the high benchmarks bond rating agencies require to earn investment-grade ratings and are unable to raise the funds on their own.
This Audio Webcast demystifies several financing options available to nonprofit community and rural hospitals. It uses case studies from actual transactions to illustrate the processes and results of each financing option, including mortgage-banking products (FHA Sec. 242 Mortgage Insurance Program, USDA Community Facilities Program) and investment banking products (tax-exempt bond issues backed by bank letters of credit and bond insurance, private placements, etc.), as well as the basic advantages and disadvantages of each.