In the past year, hospitals and health systems witnessed a once-in-a-generation financial downturn that decimated all portfolios. Although some stock indices have recovered, the broader picture makes it clear that difficult times are far from over. A set of new resources on HFMA's Healthcare Financial Pulse web site help hospitals navigate today's credit markets and hone their investment strategies.
In Hospital Strategies for Navigating Today's Credit Markets, David W. Johnson answers questions regarding credit market expectations and the orientation of credit markets today, as well as strategies to improve liquidity, better manage unfunded liabilities, optimize performance reporting, and choose the right financing vehicles.
According to Johnson, managing director and co-head of Ziegler's healthcare investment banking practice in Chicago, it will be prudent for healthcare organizations "to be more conservative in managing investments, strive for higher liquidity, focus on the core business, and prepare for whatever regulatory changes may emerge from Washington."
Investment management is the topic of two additional resources on the Pulse site. GE Asset Management's Dave Wiederecht offers Three Keys to Investing in Turbulent Times, focusing on liquidity, diversity, and investment wild cards. And Tim Sheehan, managing director with Cain Brothers, provides Three Tips for Optimal Hospital Portfolio Investing. One piece of advice: Focus on potential worst-case scenarios to reorient your investment decisions toward a more conservative perspective that emphasizes cash preservation.
