Client Success Story — Memorial Healthcare
The Challenge
Like all health care organizations, Memorial Healthcare wants to be a premier provider of quality care. That means staying abreast of new technologies and keeping facilities and equipment up to date — costly yet crucial pursuits.
As part of their strategic planning process, Memorial Healthcare began to look into conducting a five-year financial projection as well as a long-term capital needs assessment. They looked to their long-time audit partner, Plante & Moran’s Mike Klecha, who referred them to Jim Mahoney and the firm’s Healthcare Consulting team.
The Solution
The team conducted a five-year financial forecast and compared the hospital’s financial ratios with benchmarks utilized by bond rating agencies. They then compiled the information into a flexible model which provided Memorial Healthcare with the ability to:
- Determine how much debt they could afford in order to finance their capital projects, given their current debt level.
- Assist management in receiving an agreeable bond rating.
- Make the best decisions for their future.
The Results
Last year alone, the debt capacity studies have helped Memorial Healthcare finance a number of projects, including a cardiac catheterization lab addition, a fixed MRI addition, and a power plant addition. “The model showed us we could afford them,” says Grisdela. “We’re thankful to Plante & Moran for helping us make them a reality.”
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