Healthcare Financing and Today’s Market

Financing is the lifeblood of any growing business, and healthcare is one of the leading industries where the market and appetite from lenders continues to expand. With the election now over and “Obamacare” more certain than ever, although there are still challenges ahead, lenders recognize a strong opportunity for their healthcare products as market needs evolve with the new regulations.

 

Numerous lenders are positioning themselves to help finance physician groups, hospitals, nursing homes, assisted living communities, disposable medical equipment (DME), life science and pharmaceutical companies, ambulatory centers and many other outsourcing companies that support the expanding healthcare market. Whether you are looking for equity, subordinated debt, equipment financing or leasing, working capital loans, receivable financing or factoring, or financing related to asset protection, there are active markets and many competitors with varying degrees of appetite and experience for each healthcare segment.

 

The government’s focus on reducing costs has precipitated an environment for more consolidation. Financing methods are becoming more attractive and available to hospitals as well as to physician-based groups, as many older practitioners are opting to sell their practices rather than face the uncertainties related to the Affordable Care Act. This has created an active market for medical practices. There are entrepreneurs, including private equity players, who are ready to take advantage of this active market to pursue growth and expansion of their own businesses.

 

Recently the American Hospital Association said that to successfully reduce cost while increasing patient satisfaction through the use of evidenced-based medicine and value-based purchasing, the healthcare industry must heavily invest in integrated patient medical record systems and more sophisticated cost accounting systems. This will enable the healthcare system to reduce costs and make healthcare more affordable for all. However, this investment is going to be considerable and available financing of these costs will be necessary.

 

There are sophisticated lenders out there willing to help fund these projects. Marcum is also available to help you find solutions. Whether the need is an acquisition, an integration, a sale or a new system, Marcum can help with answers and introductions.