Capital Financing for Health Care Organizations

Financing the Progress of America’s Hospitals and Health Systems

Lancaster Pollard is committed to financing progress for hospitals and health systems by developing and executing low-cost, term-favorable solutions to finance or refinance capital projects. As one of the nation’s largest professional staffs focused on health care financing, we provide capital funding options for renovation, expansion and replacement projects as well as refunding or refinancing outstanding debt. We work with organizations of all sizes, from large hospitals and health systems to small and rural hospitals, including critical access hospitals (CAHs), and we understand the challenges they face in a changing health care environment.

Understanding Your Needs So You Can Understand Your Options

Lancaster Pollard works hard to thoroughly understand our clients’ needs and risk tolerance. We perform the most comprehensive qualitative and quantitative assessment in the business. We also simplify complicated processes, so you understand every funding option and make the most informed decision on a financing strategy that best serves your hospital, your patients and your community.

A hospital’s credit profile changes over time as its liquidity, profitability and capital structure change. Credit markets can also change, causing the initially agreed-upon financing structure to be a less-than-optimal choice 18 to 24 months later. Lancaster Pollard’s experienced and knowledgeable client team:

  • Offers investment banking and mortgage banking services under one roof, ensuring objectivity and optimal coordination.
  • Navigates your debt-funding process to ensure your experience is as smooth as possible.
  • Diligently negotiates the lowest cost of capital and most favorable terms possible in the current marketplace.
  • Can develop an interest rate risk management plan as part of your overall financing structure
  • Will help you continuously monitor and improve your hospital’s credit profile.
  • Has access to every funding option.
  • Has the flexibility to multi-track those options.

Access to Capital in Any Market

To obtain the lowest cost of capital and most favorable terms possible Lancaster Pollard has the independence and flexibility to match the most appropriate financing option with prevailing market conditions using funding options, such as:

  • Rated and nonrated tax-exempt and taxable bond issues
  • Revenue and general obligation bonds
  • Private sector credit enhancement, including commercial bank and Federal Home Loan Bank letters of credit
  • Government agency enhancement, including HUD/FHA Sec. 242 Hospital Mortgage Insurance and USDA loan programs
  • Private placements of bank-qualified and non-bank-qualified bonds, including the Lancaster Pollard FlexNoteSM.