The United States Department of Agriculture (USDA) has announced that it has funds available for low interest rate loans to qualifying rural facilities. Qualifying entities include non-profit organizations; Indian tribal healthcare providers; and “public bodies,” which include city, county and special districts, such as healthcare districts.
Financial Feasibility Posts
Professional valuation services are an essential element in a successful transaction. The regulatory environment that frames the healthcare industry only serves to further compel healthcare executives to retain not only valuation expertise but valuation expertise with knowledge and experience in the multi-faceted healthcare industry.
Possessing in excess of 20 years experience in healthcare industry valuation, HFS valuation professionals provide clients with more than fair market valuation documentation. A fair market value opinion typically addresses all elements of a given transaction. Implicit in a fair market valuation of an imaging center supported by a professional services agreement and management contract, for example, will be a determination of the fair market nature of those supporting agreements. (more…)
Did you submit a letter of intent for the Bundled Payment for Care Improvement Initiative, and receive a massive stack of data from CMS? Are you now wondering where to start?
HFS can transform that data into an analytical tool that will provide the following:
- Drill down to the cost drivers of each DRG
- Help you to understand the services provided and the timeframe in which they are provided
- An understanding of the physicians and post-acute providers who were paid by CMS for services provided
- The diagnoses of the patients involved
- Other factors that will be critical in developing a price proposal for CMS
Our team members can use these tools to assist you in understanding:
- The DRGs of interest
- Constructing the care management plans for managing these patients
- Identifying unrelated diagnosis and DRG carveouts
- Determining your bundled episode bid for CMS
For more information or to schedule a consultation, please contact David Robeson, HFS’s Director of Feasibility, Valuation and Capital Planning at: 510-768-0066 or firstname.lastname@example.org
The HFS Reimbursement Division contains a group of elite professionals who specialize in assisting hospitals with strategies for successful financial turnarounds.
This core group acts as interim Chief Executive Officers and Chief Financial Officers to conduct and implement agreed upon methods for improving operational efficiencies and financial considerations. HFS is recognized for its work with both rural and urban hospitals and is recommended by OSHPD’s Cal Mortgage division for specific situations.
HFS Consultants has been hired in a joint venture with Stroudwater Associates (“SA”) by MFHA to conduct a Market Demand and Financial Feasibility Study for the purpose of exploring options in delivering healthcare services in the County. This includes the possible replacement of the old Modoc Medical Center in Alturas, the main acute care hospital for Modoc County. (more…)
From Soup to Nuts
Recently, HFS teamed up with The Neenan Company of Ft. Collins, CO to conduct a comprehensive market planning and financial feasibility study as well as architectural planning and design work for a clinic in Iowa. The clinic, Linn Community Care (LCC), is a Section 330 FQHC clinic in Cedar Rapids, IA.
As a result of the devastating floods in Cedar Rapids in June of 2008 which drew national attention, their clinic was destroyed and consequently moved to a much smaller space. While eventually LCC was planning on replacing their clinic, the flood put their plans into high gear. The Clinic is applying for FIP (Facility Investment Program) funds made possible for Section 330 community health centers (CHC) through the American Recovery and Reinvestment Act of 2009. CHCs throughout the country are competing for approximately $515 million in one-time facility improvement grants, so the timing to complete our study was crucial in order for LCC to submit their application on time.
HFS’s part of the study was not only to project the demand for clinic visits by type (Medical, OB, Dental, etc.), but to also examine total market demand for clinic services in the Clinic’s service area. Part of our due diligence was to evaluate how realistic the Clinic’s physician recruitment plans were in light of market conditions and stiff competition for primary care physicians. Based on our market and clinic demand projections, HFS also prepared a rigorous debt capacity study for the clinic.
Our work was the foundation for the architectural design work completed by Neenan Archistruction. Our demand projections helped to justify the number of exam rooms planned for the new clinic and our financial feasibility work helped the clinic understand how much debt they could afford and how much money they would have to seek through capital markets and fundraising efforts.
The culmination of this work was the “Design Charrette,” a one and one half day planning meeting at Neenan’s headquarters in Fort Collins to refine planning for the Clinic. The meeting was attended by management executives and Board members from LCC, Neenan design staff, and HFS representatives, Randy Grossman, Ph.D., Manager and Tammy Staeden, Director of the Financial Feasibility Department for HFS.
As the meeting progressed we were able to make changes to our financial feasibility model in “real time” as functional and space planning assumptions and considerations for the project changed as a result of the group interaction. Using their software, Neenan personnel adjusted their functional and space plans of the proposed site by changing the number of exam rooms or other layout considerations to accommodate client expectations. This process allowed all participants to gauge impacts more efficiently. The Charrette was very effective; at the end of the meeting the LCC group expressed how pleased they were with the process, and they were able to meet their grant application deadline. This project is representative of the flexibility and collaborative teamwork HFS regularly demonstrates with its clients. If you have questions or wish to learn more about our Feasibility Services call either Randy Grossman at (510) 768-0066 extension 310 or Steve Rousso, Vice President of Licensing and Clinic services, at extension 224.
Has your facility been asking one of the following questions?
TAMMY STAEDEN, Director of Financial Feasibility
We really need to address our seismic issues, but can we afford it?
How much available debt capacity do we have to do our construction project, but still meet our operational goals?
Does it make financial sense for us to do our capital project?
If so, HFS can assist you with answering these questions.