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H2C Wins HFMA Best Article Award


Hammond Hanlon Camp LLC (“H2C”) is an independent strategic advisory and investment banking firm committed to providing superior advice as a trusted advisor to healthcare organizations and related companies throughout the United States.  H2C’s professionals have a long track record of success in healthcare mergers & acquisitions, capital markets, real estate, and restructuring transactions, acting as lead advisors on hundreds of transactions representing billions of dollars in value.  Hammond Hanlon Camp LLC offers securities through its wholly-owned subsidiary H2C Securities Inc., member FINRA/SIPC.  For more information, go to


The award, presented to the top articles published in hfm magazine in FY 2019, is based on scores received from a panel of five healthcare finance experts. The articles are judged on the writers' demonstration of technical quality and writing skills as well as the value of the article’s contribution to the literature of healthcare finance professionals.



Kelly T. Duong
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CHICAGO — Oct. 2, 2019 — Hammond Hanlon Camp LLC (“H2C”) won HFMA’s Helen Yerger/L. Vann Seawell Best Article Award for outstanding editorial achievement for its article on new lease accounting standards in healthcare, published in hfm magazine in December 2018. The article is one of three articles to win this award in FY 2019.


H2C’s article, "Bottom-line Implications of New Lease Accounting Standards: What Healthcare Leaders Should Know," written in partnership with Orrick, Herrington & Sutcliffe LLP, earned the award based on reviews by a panel of five healthcare finance experts. The article shares strategies healthcare leaders can implement to offset the risk of a new lease accounting standard that went into effect this year, including:


Carefully review financial covenants in existing borrowing agreements before the lease accounting change goes into effect. Borrowers need to be aware of whether their borrowing agreements would include operating lease obligations in “debt” or “indebtedness;” whether any balance sheet-based financial covenants are adversely impacted by the lease accounting change; and whether their borrowing agreements allow them to continue financial covenant calculations under GAAP prior to the lease accounting change.


Talk with lenders regarding their interpretation of the lease accounting guidance and any amendments. If the borrower has privately placed debt, amending the documents may be easier since the borrower is only required to negotiate with a single holder for that particular debt. If the borrower has publicly held debt, such as bonds, amending the borrowing agreement (such as the MTI or loan agreement) would require the consent of at least a majority (in principal amount) of holders, which can be difficult to obtain.


Include language excluding operating leases from the definition of debt in all new borrowings. Make sure borrowing agreements feature language that contractually excludes operating leases from the definition of debt or that clarifies that operating leases are not considered when calculating financial ratios.


Complete a financial statement impact analysis before making lease-vs.-buy decisions. Certainly, healthcare leaders should discuss with a financial advisor the need to evaluate the lease-vs.-buy decision and the structure of all leases in the context of the new accounting standard; however, there are many other factors, both quantitative and qualitative, that also must be analyzed.


Questions about the new lease accounting standard? Read the award-winning article online. Care to continue the conversation? Contact us for more information.

Congratulations to authors Bill Hanlon, Principal and Co-founder, H2C; Katie Proux, Vice President, H2C; Jenna Magan, Partner, Orrick; and Mayling Leong, Attorney, Orrick!

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