At the Becker's Hospital Review Annual Meeting in Chicago on May 18, C. Christopher Smith, senior vice president of the Healthcare Finance Group, Kevin Vermeer, executive vice president and CFO of Des Moines-based Iowa Health System, and Don Ensing, partner at McGuireWoods, discussed the current state of the healthcare credit markets.
Until recently, Iowa Health System didn't access the nonexempt market often, according to Mr. Vermeer. Now, the health system is taking advantage of the current low interest rate of nonexempt bonds, which gives the system more flexibility compared to tax-exempt bond issues, which are typically limited to specific uses.
Mr. Vermeer also shared some of Iowa Health System's financial goals. He said the system, which currently has annual revenues of $2.8 billion, aims to be at least a $4 billion organization to be successful in the future. To reach this goal, IHS is looking at expanding its eight existing regions by two or four more regions, with one or two hospitals in each region. "We think alignment with physicians is the key to the future. We are looking at organizations well advanced in their alignment strategies," he said.
4 Managed Care Negotiation Strategies for 2012
6 Hospitals Receive Credit Downgrades in Past Month
Until recently, Iowa Health System didn't access the nonexempt market often, according to Mr. Vermeer. Now, the health system is taking advantage of the current low interest rate of nonexempt bonds, which gives the system more flexibility compared to tax-exempt bond issues, which are typically limited to specific uses.
Mr. Vermeer also shared some of Iowa Health System's financial goals. He said the system, which currently has annual revenues of $2.8 billion, aims to be at least a $4 billion organization to be successful in the future. To reach this goal, IHS is looking at expanding its eight existing regions by two or four more regions, with one or two hospitals in each region. "We think alignment with physicians is the key to the future. We are looking at organizations well advanced in their alignment strategies," he said.
More Articles on Healthcare Finance:
Budgeting in Times of Uncertainty: Insight From 3 Hospital CFOs4 Managed Care Negotiation Strategies for 2012
6 Hospitals Receive Credit Downgrades in Past Month