Integrating the investment process with a healthcare system's comprehensive financial plan is increasingly important in constructing investment portfolios. We help healthcare providers develop investment strategies that complement operating and financial characteristics, capital plans and debt service obligations to support community mission objectives. Carefully evaluating key financial trade-offs will improve the likelihood that investment returns will maintain balance sheet strength, fund growing capital investment needs and support operating budgets.

Healthcare investment strategies require flexibility because spending needs can be unpredictable due to marketplace dynamics. Investment strategies for board designated hospital funds often support multiple objectives such as enhancing revenues to cover unreimbursed healthcare costs, expanding debt capacity, and maintaining reserves for revenue shortfalls or unexpected costs. Broadly diversified asset allocation policies, including alternative assets, can help healthcare institutions improve the likelihood of achieving long-term return targets with an acceptable level of portfolio volatility. While the increased complexity of these portfolios requires additional investment expertise, the long-term benefits to the institution's financial strength can be substantial.

We also develop investment strategies to support pension related plans such as a defined benefit or contribution plan.  For defined benefit plans, the investment strategy incorporates the liabilities of the organization providing a holistic approach. For a defined contribution plan, the plan's investment line-up is structured to meet the various objectives of both participants and sponsors.