We believe that if hospitals and other healthcare institutions are going to survive (and even thrive) in this rapidly changing environment, they will have to be smarter in how they deploy scarce capital resources.  Innovative thinking will be required to break with traditional methods and move toward solutions that more effectively meet the needs of the institution and its stakeholders. 

Healthcare institutions have the dual challenge of needing to attract and retain both top business leaders and, in some cases, employed physicians.  The competitive environment for the best talent is ever changing and it is getting more difficult for hospitals to attract key individuals, especially in secondary markets.  Because of this, hospitals have to be creative and look to non-traditional approaches to differentiate themselves from their competitors from an executive benefits perspective.  Beyond differentiation, hospitals should maintain focus on their bottom line and take measures to ensure that retention incentives are congruent with the long-term financial goals of the institution.  Traditional planning options such as deferred compensation and supplemental executive retirement plans (SERPs) are often detrimental to the institutions financial statements.

The CAP-Ex for Healthcare Program is well suited for these situations.  Due to the design and efficiency of the technique, CAP-Ex often requires less capital from the institution while maintaining the desired result for the employee.  Further, CAP-Ex provides for the institution’s capital to be returned plus accrued interest in the future which is an enhancement to the institutions financial statements.  This crucial feature of the program provides a measurable benefit to the institution and enhances its financial position versus traditional options.  The CAP-Ex Program is flexible and can either work in concert with or as a replacement to existing plans.

For additional information or to request a follow up call to discuss the applicability of CAP-Ex Healthcare to your institution, please contact us.