Won’t lend to health care, say commercial lenders
Won’t lend to health care, say commercial lenders
If an addition or renovation of your health care facility is in the cards for 2000, it may be a tougher trick to pull off than you think. According to the latest Phoenix Lending Survey, the health care industry is being sidestepped by commercial lenders. Survey results show 85% said they would not lend to a health care concern.
The score is the highest negative score recorded since the first such survey in 1995, said Phoenix Lending executives.
For a third consecutive quarter, more than half of the 95 lenders participating in the survey named health care as the least attractive industry among a list of 16 to which they lend. In the fall quarter, 69% of lenders named health care an unattractive industry. In July, 55% said health care was unappealing.
Does anyone hear the Code Blue’?
"There’s clearly a Code Blue’ being signaled in the health care industry," said E. Talbot Briddell, president of Philadelphia-based Phoenix Management Services, in a statement with the survey’s release in mid-December. "The question is, is anybody listening?"
Topping the list of health care concerns were not-for-profit hospitals, which 56% of respondents said were unattractive to their lending institution. Also listed as unattractive segments within the industry were:
- Managed care companies, 53%
- For-profit hospitals, 49%
- Home health care agencies, 45%
- Physician practices, 45%
- Nursing homes, 43%
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