Periodically, Capital Fund develops resources to illustrate how health centers can improve their performance and achieve their expansion goals through leveraging multiple sources of capital. Developed by Capital Fund and Capital Link, Community Health Center Financial Perspectives illuminates the financial and operational trends of the industry in order to increase the breadth and depth of information available on community health centers. Sponsored by the Citi Foundation, the series utilizes Capital Link's database of health center financial audits and HRSA's Uniform Data System (UDS) data to produce resource documents on selected topics, each written to address two audiences: (1) community health center leaders and (2) lenders and investors.
Financial and Operational Ratios and Trends of Community Health Centers, 2008-2011 – A Guide for Community Health Centers
Issue 1 in the series, this report provides health centers with national metrics and trends to assist them with growth planning and operations improvements. In order to effectively manage growth, health centers need to be able to benchmark their financial and operational performance against peer organizations. Without easily available comparative data, it has been difficult for health center leaders to identify and adopt best practices — an essential activity as health centers seek to thrive in the highly-competitive health care world. The full report for health centers is available here, and an infographic illustrating key findings is available here.
Financial and Operational Ratios and Trends of Community Health Centers, 2008-2011 – A Guide for Lenders
Issue 2 in the series, this report provides insight into multi-year financial trends for community health centers on a national basis for a lender audience. Very little data about health centers is available on a consistent basis to lenders and investors, who will play an increasingly important role in fueling the industry’s growth as it continues to mature in an environment of health reform. This analysis is a starting point to fill a knowledge gap, providing metrics not previously available on the financial and operational performance of health centers. The full report for lenders is available here and an infographic is available here. The findings were also published as part of the special report series of the Center for Community Investments, Federal Reserve Bank of San Francisco, available at www.frbsf.org/community-development/publications/special/financial-operational-ratios-trends-community-health-centers/.
Impact of Capital Projects on Health Centers: Growth, Financial Trends, and Operational Transformation – A Guide for Health Centers
Issue 3 in the series, this report provides insights such as: How fast do health centers grow after a capital project? What are the potential pitfalls? How large should cash reserves be to mitigate possible losses as a new facility ramps up? How fast do other health centers add staff and how does that affect the bottom line? How much debt do other health centers support when they take on a capital project and how much equity do they usually raise? The analysis also addresses the issue of project size, and how this factor may affect health center finances and operations. Access the complete report for health centers by clicking here. An infographic with key findings is available here.
Impact of Capital Projects on Health Centers: Growth, Financial Trends, and Operational Transformation – A Guide for Lenders
Issue 4 in the series, this report offers a data-informed analysis to guide lenders as they underwrite health center capital projects, answering questions such as: How quickly do health centers usually grow after a capital project? How do their financial trends change as a result? Are there typically losses in the early years? How long does the “high-risk” period last before operations stabilize? How many health centers utilize debt as a funding source, and how much do they use? Background information on health centers, how they differ from other healthcare providers, and their current operating environment is also included. You can find the full report for lenders here and an infographic here.