With the formation of a dedicated healthcare division in January, Wells Fargo Equipment Finance showed it is serious about financing the acquisition of imaging equipment. It named Peter Myhre as senior vice president to lead the new group, based in Minneapolis. Myhre was formerly CEO of MarCap Corporation, possibly the largest privately held equipment finance company in the U.S., before its owners, the Pritzker family of Chicago, dissolved the firm in June 2008. The new group's targeted customers include hospitals, cancer and kidney dialysis treatment facilities, surgery centers, and imaging services.
“This is consistent with Wells Fargo's philosophy of identifying segments to pursue, so we really understand customers in those segments,” Myhre said.
SIGNS OF LIFE
Despite awful market conditions, imaging centers and hospitals are finding creative ways to fund new services. Some are relying on established banking relationships. Others are stretching out the estimated time needed to turn a profit on new equipment and using charity sources where they can to supplement unreimbursed imaging costs.
Though some of Maier's clients have lost access to capital, other projects have moved forward after restructuring. Ground will be broken this year for a full-service imaging center in rural Mississippi developed by a partnership between physicians and a local businessman. They raised enough money themselves to cover 40% of the equipment costs. A loan from a local bank will pay for the rest. This approach was preferred over vendor financing involving an annual interest rate of more than 10%, Maier said.
Local banking connections also helped DRA Imaging to finance a planned expansion from its base in Poughkeepsie, NY. Mark Newman, chief financial officer of the 20-member radiology group practice, received cold calls from area bankers who were interested in discussing loans for an imaging center planned for LaGrange, a community of about 16,000. DRA's success with two other imaging centers, contracts with four area hospitals, and its 38-year history in the region helped draw bank support.
“Ultimately, we have been able to get good deals on equipment with good terms,” Newman said. “This is, in part, because of very low interest rates.”
In Southern California, charitable donations from citizens of affluent Mission Viejo are among several mechanisms that helped a unique imaging and radiation therapy service at the 301-bed Mission Hospital move forward. State-of-the art medical imaging and radiation therapy services on the ground floor will anchor a four-story tower housing 64 patient rooms, a trauma center, and surgical intensive care and neurosciences departments. The facility will open in the fourth quarter of 2009.
Joseph A. Gagliardo, executive director of imaging services and innovative technologies, designed new imaging services specifically for molecular imaging of cancer and neurological disorders. Emerging applications for the diagnosis and monitoring of cancer, stroke, and dementia led the hospital to purchase PET/CT, SPECT/CT, and 3T MR scanners and other imaging equipment.
