While the vast majority of companies only have to consider shareholder value, those within healthcare have a multitude of other considerations. Operating a business within the healthcare industry can seem like a constant balancing act between prioritising service users while keeping a close eye on overheads and liabilities. Add to this concerns over reduced funding – at both an NHS and local authority level – as well as ever-increasing regulatory compliance standards (including from the CQC and Ofsted), and growing staffing costs, the challenges seem never-ending.
The Covid-19 pandemic only served to add yet more stress. While business across almost every sector were impacted by the global crisis, it is correct to say that the healthcare industry experienced the pandemic like no other. Dealing with both the humanitarian, as well as the financial crisis, healthcare companies are now facing strategic, financial and operational challenges in the aftermath of an unprecedented health crisis.
The industry demonstrated extreme resilience in its rapid response to the Covid-19 pandemic, as well as the ongoing changes that were necessary as the situation evolved. While healthcare companies have been rightfully commended on their agility during this time, the pressure this has placed on some businesses within this industry cannot be overlooked.
Increasing demand for both healthcare services and products, has outstripped capacity and added even more acute stresses to an industry which is already – by its very nature – hugely pressured.
Add the backlog of cases which will have to be dealt with, along with the continuity of care likely to be needed from the – as yet unknown – number of individuals suffering with long-covid and it is clear to see that the pressure has not yet been lifted from the industry.
This is a situation which has affected those across the industry, from those working on the front line, through to pharmaceutical companies responsible for ensuring supply chains of vital drugs and equipment were able to get to the right people at the right time.
During these challenging times, having the support of a healthcare specialist who not only understands the sector and the issues being faced, but also the need to preserve reputation, while ensuring adequate levels of patient/service user care are maintained at all times, can be invaluable.
Working with both company directors and professional advisers, our Advisory team have been externally recognised for our sector expertise, being listed on the Market Oversight Panel for the Care Quality Commission (CQC), emphasising our expertise across the sector.
The advice we give will look different for every group/company, depending on its own unique pressure points, future aspirations, and overall viability. For healthcare businesses in distress, this may involve negotiating with all classes of creditors to assist with short to medium-term cash management, while devising a sustainable and affordable funding source to support long-term trading.
As a multi-disciplinary practice, we can offer a range of service to help the business grow and take advantage of the opportunities which arise. Our in-house commercial finance team will scour the market to find the most appropriate form of funding for your healthcare business which meets its immediate needs, while also being appropriate for long-term goals.
Our designated in-house healthcare finance division, MAF Finance, has vast experience in providing finance for all types of care home funding, pharmacies, dentists, and other healthcare businesses. We can arrange debt and private equity and can also look at other options like restructuring existing debt, unsecured funding or asset finance for purchasing equipment too.
Debt restructuring is often subject to a strict lending criterion e.g., heavier discounting of market values of properties, higher occupancy covenants. Our finance experts have built up close working relationships with numerous lenders, meaning we can assess the likelihood of acceptance ahead of time.
A full complement of property and valuation services are provided through Eddisons, our RICS sister company, so whether you are looking at selling, expanding, or relocating the company, our property experts are here to help every step of the way. We truly offer a one-stop shop of services.
If the group/company has become over-complex over time, either with offshore entities, property holding companies, or simply offering an overly ambitious complement of services, our healthcare restructuring experts can explore ways of simplifying the corporate structure, freeing up both resources and funds which can be directed towards more profitable areas of the business. An operations review by trusted consultants can divest the company of its loss-making or otherwise non-performing areas, and help ensure the business is performing in the most efficient and cost-effective manner possible.
Our specialist corporate finance team can provide comprehensive transaction support if you are looking to explore ways of selling all or part of your healthcare business. Advising on both the buy- and sell-side, our in-house team are here to offer the support and guidance you need whether you are looking to acquire, or dispose, of a business.
Where creditors are threatening legal action against the group/company, we have the expertise to consider all available insolvency options through our team of licensed insolvency practitioners.