A recent survey by Sterling National Bank shows that 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% of respondents who work for health care organizations identified ‘facilities expansion’ as their primary capital need.

At the same time, however, 68% 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% are ‘somewhat frustrated’ with their current options for raising capital and 23% are ‘very frustrated.’ This trend was consistent in the larger sample size, with 43% of all respondents identifying themselves as somewhat frustrated’ and 20% identifying as ‘very frustrated.’
  • The primary needs for capital among health care respondents are ‘facilities expansion’ (68%) and ‘new equipment financing’ (22%). Among all survey respondents, 60% picked ‘facilities expansion’ and 24% picked ‘new equipment financing.’
  • The two biggest financial challenges for health care companies are ‘the gap between insurance and providers’ (43%) and ‘the maintenance of facilities’ (32%). The total survey population echoed this trend, with an even split of 41% between the two challenges.

Among the nearly 100 survey respondents, 74% worked directly for health care providers, while 18% 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.