Working with individuals dedicated to the not-for-profit hospital sector enables our institutional advisory professionals to provide focused solutions unique to this industry. Our objective is to assist you in building risk-controlled investment portfolios that maximize returns within a balance sheet context.
We start by working to understand and integrate aspects of your business cycle with the stages of our investment cycle methodology to determine an overall risk budget for your organization. We believe that this strategy is fundamental in working with you as a strategic partner.
Our methodology focuses on four important aspects:
- Integrated Risk Budgeting
- Policy and Portfolio Construction
- Investment Outlook and Manager Research
- Measuring Outcomes and Investment Attribution
The result is a solution that purposely allocates your investment risks into your organization’s operating environment, capital structure, and required minimum rate of return.
Aspects we consider in formulating a risk budget for a hospital include:
- Strategic plans, capital expenditures and financing needs
- Debt structure and cost of capital
- Financial ratios relative to bond covenants
- Operating budget and forecasts
- Payor mix and reimbursements
- Service utilization and trends
These considerations become the basis for allocating your assets forming your investment policy, creating your risk management strategies, building your portfolio, and selecting your investments. Our customized performance reporting tools enable us to evaluate and oversee the progress towards realizing the purpose of your assets.
Our approach is ongoing. Annual reviews and participation on planning and budgeting calls help to ensure the continued appropriateness of your investment strategies.