Financing Strategies for Hospital System Ambulatory Projects: A Comparative Analysis
This white paper compares four key financing structures: lease financing, debt financing, structured products financing (Credit Tenant Leases and Synthetic Leases), and using operating cash flows.
The U.S. healthcare sector is projected to grow at 5-6% annually through 2030, with ambulatory facilities playing a central role in expanding patient care. Constructing or acquiring these assets, however, demands substantial capital – often $5-15 million for mid-sized projects. Non-profit hospital systems, which dominate the sector (comprising about 58% of community hospitals), must balance mission-driven priorities with financial sustainability. Financing decisions impact liquidity, credit ratings, and long-term viability, especially amid rising labor costs, inflationary pressures, and uneven post-pandemic recovery.
