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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:
- 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.
- Anticipated Expenditures and Capital Planning - Hospitals consider whether the use of inexpensive debt or withdrawals from the unrestricted investment pool better suits their organizations.
- 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.