Welcome to The Capital Issue, Lancaster Pollard's new e-newsletter. We are pleased to offer this inaugural issue, featuring articles by guest author Eleanor Alvarez of LeaderStat, and by our own Carl Wagner. We strive to keep this resource educational, and are happy to consider any suggestions you may have for article ideas.
Thomas R. Green, CEO
Keeping a property fresh and relevant requires the discipline of long-term planning to keep up with market demands within financial constraints. General property maintenance, however, sometimes is not enough. Organizations that expect to remain financially strong must make bigger changes periodically and have strategic plans to guide decisions to renovate, reposition or reinvent themselves.
Doctors at St. Mark’s Medical Center in Texas suspected appendicitis in a man admitted opening day. Confirming the diagnosis could have taken hours at the hospital St. Mark’s replaced. But with the new digital CT scanner St. Mark’s purchased — using funds made available by a federally-insured mortgage — the patient waited only minutes.
The recent excitement about culture change programs in long term care facilities demonstrates our decades-old desire to focus on the basics of caring for each resident’s most important needs – and not necessarily the physical ones. First and foremost, we all want to be valued, respected and cared for as unique individuals. Culture change advocates believe that quality of life is just as important as the quality of care.
In January the U.S. Department of Agriculture issued a Notice of Funds Availability (NOFA) that permits use of the Sec. 538 program to fund the needs of USDA Sec. 515 portfolios. This change offers new opportunities for both existing owners and new owners by creating a funding source for rehabilitation and preservation of affordable rural housing.
The primary asset allocation goal is to optimize the investment portfolio to maximize return, subject to an acceptable amount of risk. Nonprofit organizations with outstanding tax-exempt debt have a unique opportunity to increase expected return without increasing risk.