The Capital Issue

June-July 2012

In light of disappointing U.S. economic data and continued issues with government finances in Europe, overall interest rates could remain low beyond 2014, which would be good news for organizations that need to access capital.

It’s timely that this edition of The Capital Issue features two articles to help organizations prepare to access capital. One is about maintaining a balanced credit profile between financings and the second discusses the importance of the strategic planning process for community hospitals considering whether to renovate or replace their facilities.

Additionally, we revisit the financial feasibility of building and operating household-designed skilled-nursing facilities as well as review HUD’s new Multifamily Low Income Housing Tax Credit Pilot Program. Lastly, The Nonprofit Minute examines how fees and fund valuation affect performance of exchange-traded funds in portfolios.

If you have any questions on these topics or would like us to visit in person to explain them, please don't hesitate to contact us.

Thomas R. Green, CEO

Financial Fitness: A Well-Rounded Credit Profile Improves Access to Capital
6/5/2012

Financial Fitness: A Well-Rounded Credit Profile Improves Access to Capital

In today’s low interest-rate environment, debt financing should be top of mind for organizations. Efficient access to debt capital is imperative in order to expand and to renovate. One of the most important and often neglected factors when accessing debt capital is maintaining a balanced or well-rounded credit profile, especially between financings.

Hospital Renovation or New Construction? Get With the Plan
6/4/2012

Hospital Renovation or New Construction? Get With the Plan

Deciding whether to renovate an existing facility or to build a replacement is a challenging, but not impossible decision for community hospitals to make. As the health-care industry becomes more and more complex, strategic planning is the hallmark of strong organizations contemplating whether to renovate or replace their facilities.

Household Projects Revisited, Keys for Success: Culture Change and Cost Containment
6/3/2012

Household Projects Revisited, Keys for Success: Culture Change and Cost Containment

An increasingly popular means of reducing the institutional nature of senior-care facilities, the household model is “a living arrangement where all activities of daily living occur within a small-scaled environment, reminiscent of a large family home.”1 Typically, a senior-living campus will have multiple households containing 10 to 20 units each. In 2010, we examined the financial viability of building and operating facilities using a household model. This article revisits this model to share learnings with providers.

Tax-Credit Projects and FHA Financing: A Mismatch No More
6/2/2012

Tax-Credit Projects and FHA Financing: A Mismatch No More

When it comes to financing affordable housing transactions with low-income housing tax credits (LIHTCs), timing, as they say, is everything.

Fees, Valuation and Performance: Understanding Exchange-Traded Funds
6/1/2012

Fees, Valuation and Performance: Understanding Exchange-Traded Funds

For investment committee members it is important as fiduciaries to have an understanding of not only why the investment portfolio is structured the way it is, but also how it is structured.