Deborah Gordon was a moderator for the American Healthcare Lawyers Association's webinar Current Financing Issues for Healthcare Entities.
The current financial crisis has severely limited many borrowers' access to financing. In particular, many healthcare entities are finding it difficult to access capital or to refinance their current loan facilities. In an era when many payors are proposing reimbursement cuts and prolonging payment, and operational expenses are increasing, access to financing is as critical as ever. However, many traditional healthcare lenders have exited the market or shut their doors. Similarly, lenders are imposing more stringent standards on borrowers. The current strain on consumers and reduction in valuations have also caused many borrowers to default on their loans. Even healthy companies face difficulties growing fro the lack of financing. Many mergers and acquisitions cannot proceed without acquisition financing, and many capital projects and expansion opportunities are similarly on hold.