Cleveland Clinic Health System

"Lillibridge is known for having solid experience in the healthcare real estate capital markets."
 
Michael Minnaugh
Treasurer
Cleveland Clinic Health System
Cleveland, OH

LILLIBRIDGE EVALUATES MONETIZATION OPTIONS FOR CAPITAL FOR CLEVELAND CLINIC

As is common with most healthcare systems, Cleveland Clinic Health System was faced with the challenge of raising capital for facility and market expansion. They approached Lillibridge for an examination of monetization alternatives across a 12-property portfolio.
 
"Lillibridge is known for having solid experience in the healthcare real estate capital markets," explained Michael Minnaugh, Treasurer at Cleveland Clinic. "We were confident in their ability to assess the current market value of our select real estate assets."
 
Bottom Line Preparation
 
Prepared with a thorough market and property operations analysis, Cleveland Clinic could exercise recommendations that would impact their bottom line. To this end, Lillibridge Advisors began with an examination of the portfolio — floor plans, rent rolls, sample leases and operating statements. Discussions with Cleveland Clinic representatives included a review of interim values and assumptions based upon newly introduced, fully-allocated operating expenses for each building.
 
Measurable Results
 
Lillibridge presented valuable research that led to sound monetization recommendations — demonstrating opportunities and risks associated with alternative ownership options under various control provisions. By determining an identified market value, the Lillibridge team offered Cleveland Clinic valuable insights that detailed the specific impact to their income statement, balance sheet and key financial ratios.
 
"Although we were aware of significant capital invested in our real estate — we were not in a position to measure its implications," said Minnaugh. "Lillibridge's hard work yielded analysis that prepared us to consider our real estate as a source of capital."