Recognizing the changing world of health care capital finance, the MA-RI HFMA Capital Finance Committee has taken a new tack that recognizes the changing nature and disruptive forces that will alter the underpinnings of more traditional relationships. We began this journey on November 17 with a webinar, “Strategic Affiliations: New Models for Capital Financing”.
The expert panel assembled included Kathleen Healy, JD, a partner at Verrill Dana who explored the legal issues intertwined with strategic partnerships. The various business and operational structures were detailed by Greg Lief and Yakir Siegal, Managing Partners at Asymmetry Group, LLC. A key element is the changing nature of strategic affiliations and how these relationships have evolved in relatively short order with an ever increasing value to each deal. And we have moved past the merger and acquisition stage of strategic partnering. The nature and purpose of the case examples were key elements to the presentations.
Private equity and venture capital are investing millions, if not billions, in forging new nationally focused competitive forces to established health systems. Health plans, both national and regional, will need to forge arrangements to protect and expand their current market positions. The legal and regulatory structures will need to update approaches to address the concentration of capital and service delivery. A new definition of competition will likely need to apply. Behind it all is the need for capital and the ability to measure the value each player brings to the table. Complex structures will abound.
The Capital Finance Committee charge is to explore and educate our membership in this realm. We began with a broad look at strategic relationships as a prologue for more in-depth looks at both complementary and competing forms of capital finance. A look at both established systems staying the course as well as those changing course or partnering with new players will be integral to our programmatic approach.
To foster interest and your participation, a copy of the recording of the November 17 Capital Finance Committee program can be viewed by following this link: https://vimeo.com/647478037 or viewing below. It will be a refresher for those who attended and we hope will be of value to those who were not able to initially participate. This video will be available for a limited time, as our committee focuses on the expanded definition of capital finance.
Gary Janko, Robert Guadagno, and Eric Schwartz
MA-RI HFMA Capital Finance Committee