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The Alta Group Releases White Paper on Hospital Capital Spending

August 26, 2015, 07:00 AM
Filed Under: Healthcare

Capital expenditures continue to pose an increasing challenge for hospital CFOs, especially in light of the mandated transition to value-based care. CHG-MERIDIAN USA Corp. commissioned The Alta Group to prepare a new white paper that explores the pressure points and highlights alternative financing options available to mitigate some of their most crucial concerns.
The white paper – Financial Challenges for Hospital CFOs: Increasing Capital Efficiency while Transitioning to Value-Based Care – discusses the impact of reduced reimbursements and other cost control measures on hospitals, their top priorities for expenditures given the constraints on capital spending, and explores the benefits of flexible alternatives including equipment leasing vs. traditional funding sources.
“Bonds and commercial loans have certain limitations and are not always the best options, especially when used to acquire assets with high obsolescence rates. There are better solutions available from alternative financial services firms that provide a broad array of services and funding structures that go beyond equipment acquisition and management, to improve financial metrics and performance,” the white paper advises.
“….CFOs must seriously reconsider the requirement to ‘own’ certain technologies versus having the right device, at the right place, at the right time acquired via an operating expense model. In the current industry environment where improved financial performance can result in significant financial benefits, a focus on equipment use vs. ownership provides a true competitive advantage,” the white paper concludes.
“Due to evolving business models in the health care industry, we felt that CFOs would welcome a thoughtful approach to assessing some alternative financial solutions that could provide significant benefit while enabling hospitals to better meet the needs of both patients and the hospital’s bottom line,” said DJ DiMarco, executive vice president of CHG-MERIDIAN USA Corp. “Since improved financial efficiency is rewarded with increased funding, this is a win-win scenario.”
The study for this white paper was initiated by DJ DiMarco and his staff at CHG-MERIDIAN USA Corp. The resulting paper was based on research and editorial input by Daniel G. Morse, an Alta Director with extensive health care financing experience, and Alta Marketing Director Melisa Carter. Alta Managing Director David Wiener was also involved in the engagement. “Alta consultants frequently work with clients to produce research on behalf of their businesses, and we are excited to provide our health care industry expertise to CHG-MERIDIAN USA Corp.,” noted Alta CEO John C. Deane.
For a copy of the white paper, please click here

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