Summit Smith Healthcare Blog

Understanding the Advantages of Third-Party Ownership for Healthcare Facilities

Posted by Summit Smith on Jul 29, 2019 9:00:00 AM

In a third-party ownership model, a healthcare provider engages with a private entity to finance and implement a project. While it is commonly believed that an organization loses control over a project once engaging a third party, in actuality, they can have more flexibility while maintaining control.

There are a multitude of benefits associated with choosing to go the third-party ownership route.

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2 Main Reasons Why Healthcare Providers Engage the Private Sector to Own and Finance New Facilities

Posted by Summit Smith on Jul 22, 2019 9:00:00 AM

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.

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