Forecasts & Strategic Planning

How is your market changing? What new technologies or facilities do you need? How are payer changes affecting your operations? How will you pay for the changes?

BKD National Health Care Group has the answers. Through financial forecasting, reviewing financing alternatives and studying market share, our advisors can help you complete a financial forecast and obtain financing.

Our reputation among rating agencies, bond insurers and lending institutions has helped clients obtain financing through leases, bank-qualified debt, lines of credit and tax-exempt bonds that have been rated by major rating agencies or enhanced by major bond issues.

Our knowledge does not stop with large bond financings. We help providers analyze leasing alternatives, lines of credit or traditional bank financing and can work with your financial institution to help its officers understand health care operations. Our tax professionals can help identify tax strategies related to your financing alternatives.

Tax-exempt Bonds

For most major capital projects undertaken by a health care provider, the availability of long-term debt to finance the project is crucial. To help with the process, BKD National Health Care Group can:

• Evaluate proposed financing structures
• Recommend possible underwriters
• Evaluate underwriters’ proposals
• Review draft bond documents for unfavorable terms and help negotiate more favorable terms
• Review offering documents and help draft certain provisions

Tax-exempt revenue bonds are the most common type of long-term debt relied on by providers to raise large amounts of capital. It’s easy to be overwhelmed by the attorneys and other professionals at the negotiating table, all representing their own interests or those of the bond buyers. BKD can work with your attorney to assertively represent your interests in the financing process.

In the event conventional bond financing is unavailable or unfavorable, we can help you identify and seek government-guaranteed financing.

Financial Forecasting

Our forecasting knowledge can help you assess the viability of decisions ranging from adding new programs to building a new facility. We have helped many providers with annual strategic plans and forecasting models. We also can prepare a compiled or examined forecast for a lender or government agency, such as HUD, as well as budgets and cash-flow projections.

HUD 242 Forecasting

The HUD 242 program has allowed many providers that could not access traditional markets to obtain financing. BKD National Health Care Group has helped many providers with the HUD 242 process, including planning for the initial HUD meeting, completing the required forecast financial statements and working with HUD in its final review.