Third-party ownership has long been used for the financing and construction of healthcare facility projects in the for-profit sector. The not-for-profit sector is also in need of investment but hasn’t always engaged in third-party partnerships for facility projects. This hesitation typically is related to concerns regarding the cost of funds and loss of control.
As demands for capital resources increase, healthcare providers look elsewhere for ways to fund projects. Thus, third-party ownership with the use of private capital has grown more prominent in the not-for-profit and for-profit healthcare sectors.
There are a variety of reasons organizations choose to go this route. In a good third-party partnership model, hospitals can secure immediate funding, maintain control and utilize private-sector expertise and best practices while transferring project risks.