Creating Forms and Templates

Advice from the Field

Ed Gerardo, director of community commitment and social investments at Bon Secours Health System recommends, “having conversations with other organizations to see how they structure their community and place-based investment programs, their policy statements and their guidelines…if a health system committed someone with finance or lending experience and did this kind of research, they could develop a program in relatively short order.”1Ed Gerardo and Ross Darrow, interview by David Zuckerman and Katie Parker, Marriottsville, MD, December 16, 2015.

Hospitals and health systems have developed a variety of resources and materials to implement their place-based and community investment programs. Examples of these resources are included below. After each example form/document, please find a reference to institutions that have provided templates that are available in the More Resources section of this toolkit.

  • Loan Application: The application that an interested party would complete requesting a direct loan. (Dignity Health templates available online.)
  • Standard Form Documents: The contract created between the lender and borrower. (St. Joseph Health templates available online.)
  • Due Diligence/Monitoring Visit Agenda: Document that guides due diligence and monitoring conversations with potential and existing borrowers. (Bon Secours Health System template available online.)
  • Community Investment Brochures: Document that provides information to interested borrowers (Dignity Health and St. Joseph Health examples available online.)
  • Credit Memo Templates: Internal document for preparing the narrative rationale for loan. (Dignity Health template and examples available online.)
  • Risk Controls: Guidelines that determine maximum investment based on size of borrower. (Included in Bon Secours Health System case study in this toolkit.)
  • Pre-qualification Scan: Initial scan to determine loan applicability  (St. Joseph Health example available online.)
  • Financial Monitoring Templates: Analyses tools or “metrics” to evaluate a potential borrower’s current financial condition and future repayment projections based on cash flow. (Dignity Health templates available online.)

Establishing terms and conditions for a loan portfolio is a key step. Here are a few health system examples:

 

Health System Types of Borrower Rate of Return Range Average Rate of Return Duration of Loan Type of Loan Minimum Loan Amount
Bon Secours Health System Intermediary 0-2.5% 2.25% 3 years Interest only; semiannual $100,000
Catholic Health Initiatives Intermediary 2-4% 2-3% 5 years Principal and interest $100,000
Dignity Health Direct to nonprofit or intermediary 0-5% 3.2% 1 to 7 years Interest only $50,000
St. Joseph Health Direct to nonprofit or intermediary No set rate 2% 5 years Interest only $50,000
Trinity Health Intermediary 0-2.5% 2% 3 to 5 years Interest only $100,000

What will the community loan terms and conditions for your place-based investment program be?

Health System Types of Borrower Rate of Return Range Average Rate of Return Duration of Loan Type of Loan Minimum Loan Amount
 

 

 

The following contacts work in place-based and community investment at their institutions and can provide additional resources and information not already referenced or included in the More Resources section of the online version of this toolkit.

 

Name Institution Position Email
Pablo Bravo Dignity Health Vice President, Community Health Pablo.Bravo@dignityhealth.org
Ed Gerardo Bon Secours Health System Director of Community Commitment and Social Investments Ed_Gerardo@bshsi.org
Jeff Rich Gundersen Health System Executive Director, Envision jjrich@gundersenhealth.org

 
Lisa Laird St. Joseph Health Vice President, Cash and Investments Lisa.Laird@stjoe.org
Jennifer Neppel Catholic Health Initiatives Director, Cash and Investments JenniferNeppel@catholichealth.net
Cathy Rowan Trinity Health Director of Socially Responsible Investments rowancm@trinity-health.org

 

Tracking Dollars

Often the best place for a health system to begin the process of building a place-based investment program is by assessing its current asset allocation and investment choices.

Deciding Your Approach

What is your purpose or mission as a place-based, community investor?

Managing your Place-based Investment Portfolio

Designing your team and governance structure

Creating Forms and Templates

Hospitals and health systems have developed a variety of resources and materials to implement their place-based and community investment programs.

Moving to Impact

Communicating wins, building relationships, monitoring borrowers, and scaling impact

References   [ + ]

1. ↑ Ed Gerardo and Ross Darrow, interview by David Zuckerman and Katie Parker, Marriottsville, MD, December 16, 2015.