As the healthcare industry and capital markets continue to evolve, it will become increasingly critical for healthcare systems to clearly identify what role they want their investable reserves to play in supporting the enterprise.
The COVID-19 pandemic financially shocked healthcare system enterprises and investment portfolios, but those shocks were short lived and the recovery was swift. However, challenges still exist as revenue and expense pressures weigh upon healthcare margins in 2022, and many elements of delivering healthcare have changed the way hospitals plan and prepare for the future. To implement a successful long-term investment program, the investment playbook may call for building a solid defense before playing offense in the implementation of a long-term investment strategy.
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.
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.
The novel coronavirus (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.
The most effective investment strategy will acknowledge the uncertainty associated with future cash flows, but avoid being overly conservative so as not to impair future cash flow generation.
Executive Summary A common perception among investors that employ active equity management is that the “donut” structure—an all-active manager structure often composed of four or more high conviction managers—is more aggressive, more expensive, and riskier than the “core-satellite” structure—which blends active and passive management by adding a large passive core component to the donut—because of…
The choice of investment vehicle can have unexpected but meaningful implications for the business of managing a portfolio, affecting audit and accounting processes, financing decisions, taxes, liquidity, and even investment performance. This report provides an overview of the basic U.S. laws and regulations governing investment advisers and investment funds, discusses investment vehicles available to U.S….