Financing an additional OR

Where do you start? You start by asking yourself a series of questions about why you’re planning to equip and build-out a new operating room in your existing facility.

  • Have your actual volumes exceeded expectations?
  • Is the incremental volume from current investors and users of the ASC?
  • Is the incremental volume expected to come from new investors?
  • Are these new investors replacing current, but inactive investors?
  • Will your patient mix change (more orthopedic cases, for example)?
  • Will your payer mix change, and if so, how?
  • How much new equipment (and supplies) will you need to finance?
  • How much will the build-out cost (assuming there is build-out required)?
  • Do you have the cash to pay for the equipment and build-out without incurring additional debt? Is that wise?
  • Can you buy the equipment from one source? Does that source offer its own financing?
  • What are your relationships with your current debt sources?
  • Do you still have availability under any lines of credit you may have already established? If so, what is the structure and what do the rates look like?
  • Do you want to try to obtain better financing now that your ASC has matured?
  • Can you refinance all of your debt as a part of this equation? Should you? (You will need to check the pre-payment provisions in your current loan documents.)

Previous Page    1  2  3  4  5  6  7    Next Page