Macway Uhl helped a leading network of hospitals develop a growth strategy to meet the challenges of a growing market.

Challenge

A leading research hospital system consisting of a central landmark hospital and several community hospitals recognized that it needed to create a strategic roadmap for the future.  Its primary hospital was aging and needed investment, yet the strongest demographic growth was occurring in the outlying communities.  Strategic investment needs appeared to outweigh the ability of the organization to fund all of the desired investments.

Solution

Macway Uhl worked with management of each hospital in the system to identify, and quantify, the costs and benefits of strategic investment options.  These options including significant investments in hospital expansions, research programs, and new services.  We conducted a series of workshops with the entire management team to discuss the full range of options and the financial challenges and objectives of each investment.  In addition, various financing strategies were analyzed to support the recommended program

Results

• The Board of Directors approved a multi-billion dollar investment program and associated financing strategy
• Operational targets were established to monitor progress on the investment program and profitability performance required to support the strategy
• More than $500 million of additional debt was raised based on the strategic analysis