|By Marketwired .||
|May 6, 2014 05:11 PM EDT||
MONTEBELLO, NY -- (Marketwired) -- 05/06/14 -- While the New York market has witnessed many hospital closings over the past decade, a recent survey by Sterling National Bank, the principal subsidiary of Sterling Bancorp (NYSE: STL), shows that, today, New York-based health care companies are looking for the means to expand their footprint. Sterling's 2014 New York Health Care Financing Survey revealed that 68 percent of respondents who work for health care organizations identified 'facilities expansion' as their primary capital need. At the same time, however, 68 percent of respondents who work at health care companies said they are frustrated with their current options for raising capital, highlighting a gap that could impact the industry's growth potential.
The first-time survey canvassed industry professionals in attendance at Crain's New York Business' recent Health Care Conference. The theme of the April 10 event, which brought together more than 300 New York area health care practitioners and executives, was "The Money Challenge for New York Hospitals."
"This survey reveals that there is still work to be done to bridge the gap between the financial needs and the funding realities of the health care sector," said David Bagatelle, President of NY Metro Markets for Sterling National Bank. "The health care sector is an important engine of the Greater New York economy, and it's crucial that these businesses have access to the resources they need to grow and prosper."
The survey identified trends, challenges, and opportunities in securing financing and raising capital across the health care sector in the greater New York City area.
The key findings include:
- Of the respondents who work for health care companies, 45 percent are 'somewhat frustrated' with their current options for raising capital and 23 percent are 'very frustrated.' This trend was consistent in the larger sample size, with 43 percent of all respondents identifying themselves as 'somewhat frustrated' and 20 percent identifying as 'very frustrated.'
- The primary needs for capital among health care respondents are 'facilities expansion' (68 percent) and 'new equipment financing' (22 percent). Among all survey respondents, 60 percent picked 'facilities expansion' and 24 percent picked 'new equipment financing.'
- The two biggest financial challenges for health care companies are 'the gap between insurance and providers' (43 percent) and 'the maintenance of facilities' (32 percent). The total survey population echoed this trend, with an even split of 41 percent between the two challenges.
Among the nearly 100 survey respondents, 74 percent worked directly for health care providers, while 18 percent represented financial services firms. Survey respondents included hospital administrators and executives, insurers, banks, accounting firms, private equity firms, law firms, real estate firms, and government agencies.
"Our banking professionals have seen first-hand the challenges that health care organizations in our region are facing," said Vinny DeLucia, President of North and Central NY Markets. "As the industry continues to emerge from the financial crisis, companies are looking for financial partners like Sterling that understand the lifecycle of their business and can provide targeted solutions that meet their needs, whether it involves purchasing new equipment, expanding operations, or bringing on additional staff."
For additional details on the survey, please contact Erin Silvetti at [email protected].
About Sterling National Bank
Sterling National Bank, the principal subsidiary of Sterling Bancorp, specializes in the delivery of service and solutions to business owners, their families, and consumers in communities within the greater New York City area through teams of dedicated and experienced relationship managers. Sterling National Bank offers a complete line of commercial, business, and consumer banking products and services. For more information, visit www.snb.com.
This release may contain "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements may concern Sterling's current expectations about its future results, plans, operations and prospects and are subject to numerous assumptions, risks and uncertainties, including inflation; the effects of, and changes in, trade; changes in asset quality and credit risk; introduction, withdrawal, success and timing of business initiatives; capital management activities; customer disintermediation; and the success of Sterling at managing these risks. Other factors that could cause Sterling's actual results to differ from those indicated in forward-looking statements are included in the "Risk Factors" section of Sterling's securities filings with the Securities and Exchange Commission. The forward-looking statements included herein are only made as of the date hereof, and Sterling specifically disclaims any obligation to update these statements in the future.