Capital investment needs are increasing as health systems continue to increase their ambulatory footprints, driving them to look for creative ways to execute projects by exploring all the financial levers they can pull.
Ankura Consulting Group models a variety of scenarios and utilizes financial metrics such as the payback period, the internal rate of return (IRR), and net present value (NPV) to evaluate and prioritize options, as well as the impact such options have on key financial ratios including debt ratio, long-term debt to capitalization, liquidity, and days cash on hand.
These key financial ratios that rating agencies report on when evaluating the health of a health system, ultimately impact the system’s credit rating, debt capacity, and cost of capital. Read more.
