HFA Partners Introduces FIRM360 Hospital
Financial Risk Manager
Helps Healthcare Providers Mitigate Risk, Optimize the Capital Structure, Improve Access to Funding
November 01, 2010 08:18 AM Eastern Daylight Time
TAMPA, Fla.--(EON: Enhanced Online News)--In a recent survey, one third of healthcare executives reported
they were unprepared to deal with risk, and listed cash flow/liquidity as one of the top three risks they face along
with health reform and increased competition. Hospitals and healthcare providers are specifically concerned about
the growing risks that affect their debt, swaps, investments, ratings, and access to funding.
In response, HFA Partners, LLC, a healthcare financial advisory firm, has introduced FIRM360, a unique analytical
tool to help providers identify, quantify, mitigate and monitor the internal and external financial risks embedded in
their capital structure.
“The Lehman bankruptcy, the collapse of bond insurers, and the auction rate meltdown have all demonstrated that a
hospital’s capital structure can hide significant risks,” noted Pierre Bogacz, a former healthcare investment banker,
management consultant and co-founder of HFA Partners. “Until now, the tools weren’t around to identify and
measure these risks, so they couldn’t be properly factored into the capital and strategic planning process.”
“FIRM360 is unique in that it combines a sophisticated stochastic risk analysis model with proven enterprise risk
management (ERM) methodology already embraced by many hospitals in the patient safety, technology, human
capital and regulatory sectors,” added Chris Rea, CFA, co-founder of HFA Partners. “Providers can now identify
financial risks, quantify their probability of occurrence and magnitude of impact, define organizational risk appetite,
evaluate alternatives to mitigate risk, and put procedures in place to monitor the capital structure on an ongoing
“FIRM360 enables providers to adjust their capital structure to match their risk appetite and minimize the cost of
capital,” said Bogacz. “Everybody wants to control risk and reduce uncertainty, including of course the rating
agencies that rate bonds and directly impact the cost of funds. Nobody likes surprises, particularly of the type we’ve
experienced in the last couple of years.”
FIRM360 rounds out HFA Partners’ other healthcare financial advisory services, which include transaction
structuring, credit rating strategy, and capital market consulting.
HFA clients include Cape Cod Healthcare, a $600 million hospital system, Wellmont Health System, an 8-hospital
system, and Physicians Practice Group, the academic faculty practice plan of the Medical College of Georgia.
For more information, please visit: http://www.hfapartners.com.
HFA Partners, LLC
Pierre Bogacz, Managing Director, 813-347-9150 ext 220