A Credit Perspective
Solutions For A Pandemic
Written By: Bryce Ray
In 2020, it was made evident that hospitals & health centers needed credit solutions tailor-made for the impacts of a mega-pandemic. For over 30 years, Med One has created solutions specifically for getting essential use medical equipment into hospitals for patient care. Over the past year, most hospitals & health centers cut back capital budgets in support of current essential necessities such as PPE, increased staffing, and trying to manage reduced revenues with postponed elective procedures and lower margins. With liquidity strained even with the support of the CARES Act funding, Med One provided hospitals with diverse options to obtain equipment such as peak-need short-term rentals, 12 to 84-month leases, and Same As Cash/Deferral programs. These credit programs are customized to help hospitals with liquidity due to reduced capital budgets and the need caused by the pandemic to have equipment NOW for patient care. At Med One, we love making medical equipment available in creative, simple, and responsive ways. This is our mission.
2021 Healthcare Outlook Themes
- Additional CARES Act support.
- Pent-up demand for new medical equipment & capital spending.
- Hospital revenue normalization to pre-COVID levels (late 2021 / early 2022).
- Ongoing COVID-19 testing & vaccinations.
- Higher unemployment rates = potential for adverse hospital payor mixes.
- Pent-up demand for elective procedures & treatment for other chronic medical conditions.
- Continued management of hospital costs (hospitals continue to gain efficiencies).
- Future of PPE costs.
- Digital transformation & increasing telehealth utilization.
From a credit perspective, these current healthcare themes are financially impacting hospitals, and Med One is here to help our customers with short-term to long-term equipment needs.
Reference: Moody’s Investor Services, Healthcare – Global 2021 Outlook, Research Publication, 12/14/2020