From big-dollar deals and transactions to new analytics approaches and operational strategies, it was an active year in the realm of capital finance in healthcare. Here, Healthcare Finance News looks back at the top capital finance stories of 2016.
Mega Insurance deals could have big effect on credit ratings
"Standard & Poor's has warned Anthem, Cigna, Aetna and Humana that the substantial debt needed to finance the proposed mergers between them may cause their credit ratings to fall.
On the other hand, if the mergers are run well, the result would improve the companies' long-term competitive positions, putting them on closer footing with industry leader UnitedHealth Group in terms of revenue size and membership, the agency said in its report on the effect the mega mergers would have on the insurers' credit quality."
To read more: http://www.healthcarefinancenews.com/news/mega-insurance-deals-could-hav...
Healthcare reform, value-based pay bolsters credit ratings... for now
"While reforms tied to the Affordable Care Act have most healthcare providers focusing on quality and efficiency, financial experts say the dramatic change in business model is driving improvement in credit ratings. But worries still persists about just how stable those changes are."
To read more: http://www.healthcarefinancenews.com/news/healthcare-reforms-value-based...
Henry Ford Health restructures systemwide debt in historic $1 billion transaction
"Henry Ford Health System made history this week when it successfully restructured all of its existing debt in a transaction that spawned $3.6 billion in bond orders and a final sale of $1 billion in bonds, the system announced Thursday.
Henry Ford Health called it the largest healthcare tax exempt bond issue in Michigan in the last quarter century, and possibly the largest in state history."
To read more: http://www.healthcarefinancenews.com/news/henry-ford-health-restructures...
Rural VA medical centers to receive $215 million dollar boost
"The Department of Veterans Affairs Office of Rural Health will give out $215 million in grants to 138 VA medical centers, according to the Department of Agriculture.
The money will also support about 800 rural providers as it helps 570,000 rural veterans get access to healthcare services."
To read more: http://www.healthcarefinancenews.com/news/rural-va-medical-centers-recei...
Financial analysts push 'Monte Carlo' analytics to solve healthcare issues
"Monte Carlo, an old gambling concept, could have a future in healthcare as an approach to data analytics that allows managers to crunch vast amounts of data in order to support fiscally prudent decisionmaking.
The approach, created by Josh Lefcowitz and David Friend, consulting managing directors at financial advisory firm BDO, is starting to gain traction due to the increased processing power of modern computers."
To read more: http://www.healthcarefinancenews.com/news/financial-analysts-push-monte-...
Philanthropy, emotion give children's hospitals a financial boost
Children's hospitals operate much differently than general hospitals. Patient demand is greater, competition is limited and fundraising is generally stronger, which, according to a recent Moody's report, contributes to stronger margins. But children's hospitals also rely heavily on Medicaid funding, which makes them especially vulnerable in the face of potential repeal of the Affordable Care Act.
To read more: http://www.healthcarefinancenews.com/news/philanthropy-emotion-give-chil...
Twitter: @JELagasse