The Capital Issue

October-November 2012

This is the traditional time of year to take stock and be grateful for life’s blessings. It’s also a perfect time to thank our clients for trusting Lancaster Pollard to help them finance their projects and manage their assets.

Although uncertainty remains due to the election, health-care reform, financial regulations and the economy, what continues to be certain is that financially strong providers, regardless of their size, will continue to have access to the capital markets. The current low interest-rate environment is an excellent opportunity for providers to continue to improve their balance sheets by reducing debt service and improving liquidity.

I’d also like to take this opportunity to invite you to explore our new websites—lancasterpollard.com and chiefinvestmentofficer.com. Our goal is to provide our visitors with easy-to-find information about our firm when they need it.

This edition’s feature explores the financial impact of Medicare audits on health-care providers and suggests best practices to protect against the adverse impact of an audit. Two separate articles focus on FHA refinancing opportunities for hospitals and Sec. 202 properties. For assisted-living providers, we discuss Medicaid reimbursement and how providers can benefit from participating in the program. Finally, The Fiduciary Focus, formerly The Nonprofit Minute, begins a two-part series on common investment mistakes made by nonprofit trustees and how to avoid them.

Tom Green, CEO

Medicare Audits: Protecting Against Adverse Financial Impact
10/11/2012

Medicare Audits: Protecting Against Adverse Financial Impact

The Institute of Medicine, a branch of the National Academy of Sciences, released a report dated Sept.13, 2012 asserting the U.S. health-care system wastes about $750 billion each year due to overpayment, poor billing practices and inaccurate diagnosis.

Overlooked? Refinancing Options via FHA
10/10/2012

Overlooked? Refinancing Options via FHA

Capital spending by hospitals will likely remain flat through 2014-2015 amid a still weak economy, tight credit markets, the uncertain impact of the new federal health-care law, low patient volumes and the increasing number of uninsured/underinsured patients along with decreased reimbursement rates, according to the recent hospital median reports from the Big Three credit rating agencies. Serious external threats continue to apply pressure on a health-care provider’s bottom line while patients increasingly expect state-of-the-art facilities and services that provide quality and value.

Assisted Living: How Medicaid Reimbursement Can Pay Off for Providers
10/9/2012

Assisted Living: How Medicaid Reimbursement Can Pay Off for Providers

Reimbursement for assisted-living providers historically has been private pay. While that continues to be the case, over the last decade there has been an expansion in the number of states that contribute Medicaid dollars for some services.

HUD Updates: Refinancing 202 Properties
10/8/2012

HUD Updates: Refinancing 202 Properties

Nonprofit board members and their management agents should be aware that the Office of Housing and Urban Development (HUD)/Federal Housing Administration (FHA) has made a number of changes in its Sec. 202 Program over the past several months that make it more attractive for nonprofit property owners to prepay and refinance their existing loans during the current low interest-rate environment.

Oversight-Part 1: Common Investment  Mistakes of Trustees
10/7/2012

Oversight-Part 1: Common Investment Mistakes of Trustees

This is the first in a series about the most common mistakes nonprofit organizations make when considering their investment portfolio. Not being aware of one or more of these missteps could have costly consequences.