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Houston Business Journal: Financial Meltdown Doesn't Derail Houston Hospital Expansions

Houston partner Bob Wolin was quoted in an October 24 Houston Business Journal article, "Financial Meltdown Doesn't Derail Houston Hospital Expansions."

According to the article, "while the crippled capital markets and financial institution woes have forced capital expenditures for building programs and purchases of new technology to be put on hold by many hospitals and health care providers, some Houston-based health care operations are taking a more optimistic stance."

While the hospitals are moving ahead with their plans, there is concern that the financial crisis may bring about a slowdown in the local business community overall, according to the article. This could lead to a loss of jobs, which means a loss of health insurance—and translates into more people coming to emergency rooms or hospitals without insurance and the hospitals having to absorb more costs as chairity or bad debt.

Wolin, a member of the firm's Healthcare team, however, is encouraged by the steps the U.S. government and other governments have taken to unfreeze the credit markets and get money flowing again. He believes the situation will begin easing up a bit over the next few weeks, although he doesn't think the bond markets will begin recovering until 2009.