Summary of Work:

Warbird Consulting Partners and Warbird Municipal Advisors have worked with Penn Highlands Healthcare on several projects over the last few years. The key projects have involved debt planning types of projects such as debt capacity analyses, rating agency meeting preparation, and analyses of various financing structures, as well as revenue cycle projects. Penn Highlands Healthcare, a five-hospital community health system with approximately $600 million in total operating revenues, has reached out to Warbird as it continually considers various acquisitions.

Background:

Penn Highlands Healthcare is a five-hospital system in central Pennsylvania. It includes one relatively large community hospital supported by four smaller ones, one of which was acquired in the last several months. The organization benefits from its strong market position, which is valuable for its relationships with its physicians and the managed care entities in the area.

Areas of Focus:

In addition to helping Penn Highlands with various revenue cycle projects, Warbird has also helped Penn Highlands with debt capacity analyses, rating agency meeting preparation, and analyses of various debt structures. The debt capacity analyses suggested differing rating agency outcomes at different levels of debt. The rating agency meeting preparation involved helping to structure the presentation with qualitative and quantitative types of information. The analyses of various debt structures involved helping with obtaining a taxable line of credit and analyzing the structural features of a New Market Tax Credit financing.

Outcomes:

  • Development of ideal financing amount, most appropriate financing structure, and organization of capital projects
  • Maintenance of current rating and outlook during COVID-19 pandemic
  • Selection of most appropriate bank for line of credit and complete understanding of a complicated financing structure

Conclusion:

Warbird Consulting Partners and Warbird Municipal Advisors have been strong partners with Penn Highlands Healthcare with various operations and debt-oriented projects. These projects have all resulted in favorable outcomes for the organization.

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