Managing Healthcare Project Financing Investments: A Corporate Finance Perspective

Roberto Moro Visconti

doi:doi:10.11648/j.jim.20130201.12

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Managing Healthcare Project Financing Investments: A Corporate Finance Perspective

Roberto Moro Visconti

Published in Journal of Investment and Management (Volume 2, Issue 1)

Published: 10 January 2013

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Abstract

Healthcare infrastructures are a typical risky investment, which can be financed in many different and competing ways, and Public Private Partnership and project financing techniques are increasingly recognized as a useful and appropriate device. Risk identification, transfer, sharing and management are a key point of the whole structure and the risk matrix, used in order to classify and - wherever possible - measure risk is an unavoidable part of the investment package. To the extent that it can be professionally managed by specialized agents, risk sharing or transmission is not a zero sum game, even if risk pricing is never a trivial issue. While the public part traditionally bears core market risk (demand for health services), other key risks, such as those related to construction and management of commercial (hot) activities, are typically transferred to the private part, often represented by a private entity. A corporate finance perspective is crucial for preparing a proper business model, where economic and financial flows are projected along the time span of the investment, with managerial and strategic insights for not ephemeral sustainability. Capital structure issues, rotating around (optimal) leverage, are eventually discussed, starting from a Modigliani & Miller framework, with practical insights and sensitivity analyses.

Published in	Journal of Investment and Management (Volume 2, Issue 1)
DOI	10.11648/j.jim.20130201.12
Page(s)	10-22
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2013. Published by Science Publishing Group

Keywords

PPP, Hospitals, Discounted Cash Flows, Modigliani & Miller Theorems, Cost of Capital, Risk, Leverage, Bankability, Corporate Governance

References

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APA Style

Roberto Moro Visconti. (2013). Managing Healthcare Project Financing Investments: A Corporate Finance Perspective. Journal of Investment and Management, 2(1), 10-22. https://doi.org/10.11648/j.jim.20130201.12

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ACS Style

Roberto Moro Visconti. Managing Healthcare Project Financing Investments: A Corporate Finance Perspective. J. Invest. Manag. 2013, 2(1), 10-22. doi: 10.11648/j.jim.20130201.12

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AMA Style

Roberto Moro Visconti. Managing Healthcare Project Financing Investments: A Corporate Finance Perspective. J Invest Manag. 2013;2(1):10-22. doi: 10.11648/j.jim.20130201.12

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@article{10.11648/j.jim.20130201.12,
  author = {Roberto Moro Visconti},
  title = {Managing Healthcare Project Financing Investments: A Corporate Finance Perspective},
  journal = {Journal of Investment and Management},
  volume = {2},
  number = {1},
  pages = {10-22},
  doi = {10.11648/j.jim.20130201.12},
  url = {https://doi.org/10.11648/j.jim.20130201.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20130201.12},
  abstract = {Healthcare infrastructures are a typical risky investment, which can be financed in many different and competing ways, and Public Private Partnership and project financing techniques are increasingly recognized as a useful and appropriate device. Risk identification, transfer, sharing and management are a key point of the whole structure and the risk matrix, used in order to classify and - wherever possible - measure risk is an unavoidable part of the investment package. To the extent that it can be professionally managed by specialized agents, risk sharing or transmission is not a zero sum game, even if risk pricing is never a trivial issue. While the public part traditionally bears core market risk (demand for health services), other key risks, such as those related to construction and management of commercial (hot) activities, are typically transferred to the private part, often represented by a private entity. A corporate finance perspective is crucial for preparing a proper business model, where economic and financial flows are projected along the time span of the investment, with managerial and strategic insights for not ephemeral sustainability. Capital structure issues, rotating around (optimal) leverage, are eventually discussed, starting from a Modigliani & Miller framework, with practical insights and sensitivity analyses.},
 year = {2013}
}

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TY  - JOUR
T1  - Managing Healthcare Project Financing Investments: A Corporate Finance Perspective
AU  - Roberto Moro Visconti
Y1  - 2013/01/10
PY  - 2013
N1  - https://doi.org/10.11648/j.jim.20130201.12
DO  - 10.11648/j.jim.20130201.12
T2  - Journal of Investment and Management
JF  - Journal of Investment and Management
JO  - Journal of Investment and Management
SP  - 10
EP  - 22
PB  - Science Publishing Group
SN  - 2328-7721
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AB  - Healthcare infrastructures are a typical risky investment, which can be financed in many different and competing ways, and Public Private Partnership and project financing techniques are increasingly recognized as a useful and appropriate device. Risk identification, transfer, sharing and management are a key point of the whole structure and the risk matrix, used in order to classify and - wherever possible - measure risk is an unavoidable part of the investment package. To the extent that it can be professionally managed by specialized agents, risk sharing or transmission is not a zero sum game, even if risk pricing is never a trivial issue. While the public part traditionally bears core market risk (demand for health services), other key risks, such as those related to construction and management of commercial (hot) activities, are typically transferred to the private part, often represented by a private entity. A corporate finance perspective is crucial for preparing a proper business model, where economic and financial flows are projected along the time span of the investment, with managerial and strategic insights for not ephemeral sustainability. Capital structure issues, rotating around (optimal) leverage, are eventually discussed, starting from a Modigliani & Miller framework, with practical insights and sensitivity analyses.
VL  - 2
IS  - 1
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Author Information

Roberto Moro Visconti

Dept. of Business Management, Università Cattolica del Sacro Cuore, Milan, Italy

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APA Style

Roberto Moro Visconti. (2013). Managing Healthcare Project Financing Investments: A Corporate Finance Perspective. Journal of Investment and Management, 2(1), 10-22. https://doi.org/10.11648/j.jim.20130201.12

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ACS Style

Roberto Moro Visconti. Managing Healthcare Project Financing Investments: A Corporate Finance Perspective. J. Invest. Manag. 2013, 2(1), 10-22. doi: 10.11648/j.jim.20130201.12

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AMA Style

Roberto Moro Visconti. Managing Healthcare Project Financing Investments: A Corporate Finance Perspective. J Invest Manag. 2013;2(1):10-22. doi: 10.11648/j.jim.20130201.12

Copy | Download

@article{10.11648/j.jim.20130201.12,
  author = {Roberto Moro Visconti},
  title = {Managing Healthcare Project Financing Investments: A Corporate Finance Perspective},
  journal = {Journal of Investment and Management},
  volume = {2},
  number = {1},
  pages = {10-22},
  doi = {10.11648/j.jim.20130201.12},
  url = {https://doi.org/10.11648/j.jim.20130201.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20130201.12},
  abstract = {Healthcare infrastructures are a typical risky investment, which can be financed in many different and competing ways, and Public Private Partnership and project financing techniques are increasingly recognized as a useful and appropriate device. Risk identification, transfer, sharing and management are a key point of the whole structure and the risk matrix, used in order to classify and - wherever possible - measure risk is an unavoidable part of the investment package. To the extent that it can be professionally managed by specialized agents, risk sharing or transmission is not a zero sum game, even if risk pricing is never a trivial issue. While the public part traditionally bears core market risk (demand for health services), other key risks, such as those related to construction and management of commercial (hot) activities, are typically transferred to the private part, often represented by a private entity. A corporate finance perspective is crucial for preparing a proper business model, where economic and financial flows are projected along the time span of the investment, with managerial and strategic insights for not ephemeral sustainability. Capital structure issues, rotating around (optimal) leverage, are eventually discussed, starting from a Modigliani & Miller framework, with practical insights and sensitivity analyses.},
 year = {2013}
}

Copy | Download

TY  - JOUR
T1  - Managing Healthcare Project Financing Investments: A Corporate Finance Perspective
AU  - Roberto Moro Visconti
Y1  - 2013/01/10
PY  - 2013
N1  - https://doi.org/10.11648/j.jim.20130201.12
DO  - 10.11648/j.jim.20130201.12
T2  - Journal of Investment and Management
JF  - Journal of Investment and Management
JO  - Journal of Investment and Management
SP  - 10
EP  - 22
PB  - Science Publishing Group
SN  - 2328-7721
UR  - https://doi.org/10.11648/j.jim.20130201.12
AB  - Healthcare infrastructures are a typical risky investment, which can be financed in many different and competing ways, and Public Private Partnership and project financing techniques are increasingly recognized as a useful and appropriate device. Risk identification, transfer, sharing and management are a key point of the whole structure and the risk matrix, used in order to classify and - wherever possible - measure risk is an unavoidable part of the investment package. To the extent that it can be professionally managed by specialized agents, risk sharing or transmission is not a zero sum game, even if risk pricing is never a trivial issue. While the public part traditionally bears core market risk (demand for health services), other key risks, such as those related to construction and management of commercial (hot) activities, are typically transferred to the private part, often represented by a private entity. A corporate finance perspective is crucial for preparing a proper business model, where economic and financial flows are projected along the time span of the investment, with managerial and strategic insights for not ephemeral sustainability. Capital structure issues, rotating around (optimal) leverage, are eventually discussed, starting from a Modigliani & Miller framework, with practical insights and sensitivity analyses.
VL  - 2
IS  - 1
ER  -

Copy | Download