For most hospitals, the second largest cash outflow item, after payroll, is capital spending. Aging plants, obsolescence and emerging technologies, advances in medical knowledge changing standards of care, shifting reimbursement and consumer choice all create tremendous demand for capital spending year in and year out. Finding enough cash and debt resources is often one of biggest challenges for any institution.
GreenRock hPACE financing provides a new source of funds to help hospitals manage their annual and long-term capital programs. hPACE does not require a loan agreement and there are no financial covenants or institutional guarantees. hPACE is less expensive than traditional capital leasing, and you own the assets from date of acquisition. In our experience, more than 50% of any construction project and a wide array of large capital purchases can qualify for GreenRock hPACE financing.
Another great utility of hPACE is that it can be used to reimburse your hospital for prior qualifying expenditures. The cash received through this reimbursement can be used for any working capital needs or other capex projects.
GreenRock will review your capex budget or construction budget details at no cost to determine how much of your planned spending will qualify for GreenRock hPACE financing.
Examples of Qualifying Expenditures:
- Chillers, boilers, and furnaces
- HVAC, BMS, BAS, EMS controls
- Seismic retrofits
- Water heating systems
- Energy management systems and controls
- Elevator modernization
- Distributed generation systems
- Heat recovery and steam traps
- Cath Labs
- Renovations in patient care areas such as patient rooms, ORs, radiology, data centers, labs
- Air handlers
- Cooling towers
- Water management systems and controls
- Irrigation equipment
- Rainwater collection systems
- Greywater systems
- Central plant upgrades or additions
- Nurse call systems
- OR lights
- Surveillance systems