INSTITUTIONAL INVESTORS

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Institutional Investors Knowledge Center

Oct
19
2012

ACA Impact on Healthcare Investment Management

Trends shaping healthcare investment strategies during ACA legislation

Key components of the 2010 Patient Protection and Affordable Care Act (ACA) were upheld in a Supreme Court ruling. We have identified three trends shaping the investment strategies of healthcare organizations during this time of change:

  1. Cash Retention and Liquidity Level - Hospitals have maintained large cash reserves and liquidity positions within their investment portfolios in effort to partially accommodate unforeseen expenditure requirements that may arise from the ACA.
  2. Anticipated Expenditures and Capital Planning - Hospitals consider whether the use of inexpensive debt or withdrawals from the unrestricted investment pool better suits their organizations.
  3. Mergers and Acquisitions - More hospitals are acquiring or merging to gain greater size and scale, which leads to better access to credit and affordable capital.

Read the full paper: Impact of ACA on Healthcare Investment Management