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Navigating the Future: Exploring Opportunities in Healthcare Asset-Based Lending
October 17, 2023
By Jennifer Sheasgreen
Healthcare is an industry that is constantly changing. Lenders wishing to lend into the space need to develop expertise pertaining to the unique financial needs and challenges of the sector. This article explores the opportunities to lend into this space.
Healthcare is an industry sector that continues to grow and highlights a promising avenue for lending institutions to financially aid in the growth of hospitals, medical facilities, and other ancillary providers. Lending into the healthcare space
not only provides a viable investment option, but contributes to improved patient care and outcomes and can play a crucial role in shaping the future of healthcare delivery.
National Healthcare Expenditures (NHE) grew 2.7% to $4.3 trillion in 2021 and accounted for 18.3% of the Gross Domestic Product (GDP), according to the Centers for Medicare and Medicaid Services (CMS). Of that amount, Medicare and Medicaid spending accounted for 21% and 17% respectively, amounting to $1,634.8 billion. By 2031, healthcare is projected to account for 19.31% of the GDP.
In an ever-growing sector, lenders that specialize in developing expertise in the unique financial needs and challenges of the sector can help to tailor their lending solutions to better meet the demands of healthcare organizations. Specifically focusing on asset-based, working capital lending, we will explore the opportunities to lend into this space.
Increasing Demand for Healthcare Services
COVID’s challenges have sparked new opportunities for the delivery of healthcare. McKinsey & Company reported that scaled-up innovation was prompted by the pressure the pandemic put on the healthcare system. One example of this is the expansion of telehealth. Prior to the pandemic, Medicaid beneficiaries had the flexibility to use telehealth, Medicare beneficiaries did not. During COVID, HHS (Health and
Human Services) waived some of those restrictions and expanded coverage to Medicare beneficiaries. That coverage has been extended until December 31, 2024, with providers hoping it will be extended indefinitely.
Please click here to read the full article.
Healthcare is an industry sector that continues to grow and highlights a promising avenue for lending institutions to financially aid in the growth of hospitals, medical facilities, and other ancillary providers. Lending into the healthcare space
not only provides a viable investment option, but contributes to improved patient care and outcomes and can play a crucial role in shaping the future of healthcare delivery.
National Healthcare Expenditures (NHE) grew 2.7% to $4.3 trillion in 2021 and accounted for 18.3% of the Gross Domestic Product (GDP), according to the Centers for Medicare and Medicaid Services (CMS). Of that amount, Medicare and Medicaid spending accounted for 21% and 17% respectively, amounting to $1,634.8 billion. By 2031, healthcare is projected to account for 19.31% of the GDP.
In an ever-growing sector, lenders that specialize in developing expertise in the unique financial needs and challenges of the sector can help to tailor their lending solutions to better meet the demands of healthcare organizations. Specifically focusing on asset-based, working capital lending, we will explore the opportunities to lend into this space.
Increasing Demand for Healthcare Services
COVID’s challenges have sparked new opportunities for the delivery of healthcare. McKinsey & Company reported that scaled-up innovation was prompted by the pressure the pandemic put on the healthcare system. One example of this is the expansion of telehealth. Prior to the pandemic, Medicaid beneficiaries had the flexibility to use telehealth, Medicare beneficiaries did not. During COVID, HHS (Health and
Human Services) waived some of those restrictions and expanded coverage to Medicare beneficiaries. That coverage has been extended until December 31, 2024, with providers hoping it will be extended indefinitely.
Please click here to read the full article.
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