Is Now the Time to Terminate Legacy Interest Rate Hedges?
A changing interest rate environment has reopened the opportunity to consider terminating an organization’s swap position. Organizations should take a measured approach in determining whether this is an opportunity they wish to pursue.
Uncertainty Regarding Covenant Compliance Continues
Responses to Kaufman Hall’s 2023 “State of Healthcare Performance Improvement” report indicate ongoing concern regarding covenant challenges in 2024. Organizations need to understand the causes of covenant misses and near misses and build a durable financial plan for the future.
Revisiting Counterparty Risk
Counterparty risk management must be continually reinforced by implementing and following best practices. This process can help form a stronger and more diverse network of banking partners that will serve an organization well throughout its business cycle.
The Balance Sheet Buffer
Balance sheet strength has buffered consumers and businesses from some of the restrictive shock of higher rates. With a relatively brittle revenue model in healthcare, the focus becomes whether, when, and how to restructure operations as balance sheets are spent down.
Downgrades and the Rating Sword of Damocles
The number of not-for-profit hospital rating downgrades has escalated in 2023, suggesting that benefit of the doubt is running out. Hospitals will need to go the extra mile when preparing material for their rating agency meetings.
External Capital Formation in a Higher Rate Environment
After years of monetary tingle, a more restrictive stance from the Federal Reserve is creating a chill. A sustained higher interest rate environment may require finance teams to rethink external capital formation strategies.
Creating a Responsive Balance Sheet
In this webinar hosted by Russell Investments, Thomas Jefferson University’s SVP and Chief Investment Officer Alfred Salvato describes the benefits of implementing a strategic resource allocation framework across the organization’s balance sheet assets.
Inside Rating Committee: Five Things to Know
The rating committee is central to the rating process: all rating decisions are made by the committee, not an individual. In her new blog, Lisa Goldstein identifies five things to know about what happens in a rating committee.
Thoughts About a Governance Downgrade
Fitch Ratings recently downgraded the United States’ long-term rating. Healthcare confronts a different manifestation of the same pressures confronting the U.S., and the lesson for leaders is that governance and planning systems matter.
The Quest for Soft Landings
For the Federal Reserve, a soft landing means we arrive at the 2% inflation target without a recession. For healthcare, a soft landing is operating and investment entity recovery that stabilizes credit positioning and facilitates capital formation.
Hitting the Reset Button – The Sequel
As organizations prepare for rating agency presentations, financial performance will continue to occupy much of the agenda. But analysts also will want an update on long-term strategies as performance stabilizes and the industry resets to a new status quo.