Hospitals
Client Overview
- County funded Regional Hospital looking to upgrade their financial software & technology infrastructure
- EMR & associated hardware project to be implemented over a 15 month period
- Lease was subject to fiscal funding (FFO) & annual appropriations clause requirements
- Incumbent lessor was not flexible with the lease structure & FFO documentation
Business Challenges
- Client was receiving conflicting information from lessors regarding the lease structure & costs
- Large software percentage combined with Fiscal Funding (FFO) requirement was problematic
- Creating a lease structure with limiting interim rent charges during the 15 month implementation
- Timing of software module completions throughout the 15 month implementation period
Solutions Implemented
- Coordinated a call with the client's CFO & Legal to understand the exact FFO requirements
- Documented a three way assignment agreement with the vendor, in advance, to avoid project delays
- Partnered with the vendor to identify the specific milestone payment & module completion dates
- Completed a credit write-up & transaction approval, including FFO language, prior to business being awarded
The Result
- As a result of our transaction diligence and pre-award commitment, IFS was awarded the business
- A lease with periodic lease commencements, based on individual module completions, was structured
- Limited interim rent with a fixed, pre-determined amount was established, based upon completion dates
- Project implementation started on time to qualify for "meaningful use" & federal reimbursement
