469-507.qxd 11/27/06 12:09 PM Page 485 United States vendor/prime contractor, its credit quali- In addition, but less of concern, is the ty, the quality of its product and services quality of the vendor, since a problem Leasing services and the quality of the organisation. Also, vendor might lead to a reason for non- some performance risk is minimised by appropriation. Edwards & Angell, LLP 2800 Financial Plaza, Providence, RI 02874, US. Tel: +1 (401) 276 assuring the installation and perform- Compliance with federal tax require- 6636; Fax: +1 (888) 325 9065; Email: [email protected]. Managing Partner: Terry Finn; ance of the asset with acceptance of the ments is also of importance on lease-pur- Partner: Business Aviation Practice Group: Edward H. Kammerer. asset by the federal government at the chase transactions to preserve the Activities: Counsels both financial institutions and their customers in all aspects of business aircraft finance, acquisitions and outset before funding. tax-exempt status of the transaction. operations. There does not exist an opinion prac- Federal leasing, with the superb credit Edwin E Huddleson, III, Esq. tice of getting opinions on the legal, valid quality of the US government, focuses on 1250 Connecticut Avenue, NW. Suite #200, Washington, DC 20036, US. Tel: +1 (202) 543 2233; Fax: +1 (202) 783 7678; Email: and binding nature of a federal lease on the essential use of the asset to the feder- [email protected]; Website: www.lawyers.com/huddleson. Chief the federal government due mainly to the al government due to the federal govern- Executive: Edwin E. Huddleson, III. existence of experienced contracting offi- ment’s right annually not to renew or to El Camino Resources 21300 Superior Street, Chatsworth, CA 91311-4312, US. Tel: +1 cers assigned to the transactions. non-appropriate. (818) 226 6600; Fax: +1 (818) 226 6640. Chief Executive: David E. Conclusions. Commercial leasing tends Often more importantly, the Harmon. Activities: Buying and selling of computer equipment. to focus on the credit quality of the les- vendor/prime contractor is the focus and eLease see, its ability to pay, regardless of concern, since its performance under the 130 Bush Street, 7th Floor, San Francisco, CA 94104, US. Tel: +1 whether the lessee needs the asset or contract with the federal government (415) 391 9500; (415) 391 9508; Fax: +1 727 209 1201; Email: [email protected]. Contact: Tom Williams. whether the asset performs. remains a risk to the assignee throughout Activities: Member of the United Association of Equipment Leasing Municipal leasing tends to focus on the term of the federal lease. (UAEL). the essential use of an asset because of The Elex Group PO Box 14, Medford, NJ 08055, US. Tel: +1 (609) 654 1100; Fax: the right of the governmental lessee to ᭧ George Mardikes 2006. +1 (609) 654 9531; Email: [email protected]. Contact: Marc non-appropriate annually, since the cred- Pettine. Activities: Member of the United Association of Equipment Leasing it quality is not that much of a concern (UAEL). due to the infrequency of bankruptcy Emkay, Inc This article was written by George Mardikes, Davis and legislation requiring balance budgets 805 West Thorndale Avenue, Itasca, IL 60143, US. Tel: +1 (630) 250 Wright Tremaine LLP,1300 SW 5th Avenue, Suite 2300, 7400; Fax: +1 (630) 250 7077; Website: www.emkaynet.com. and a certain degree of fiscal responsibil- Portland, Oregon 97201, US. Tel: +1 503 778 5323, Fax: Chairman, President & CEO: Gary Tepas; Email: +1 503 276 5623, Email: [email protected] [email protected]; SVP, Marketing: John C. Rennels; Email: ity. [email protected]. Group VP, Operations and International: Greg Tepas; Direct Tel: +1 (630) 775 6215; Email: [email protected]. Activities: Member of the American Automotive Leasing Association. of our society and whose responsibility it Enterprise Fleet Services HEALTHCARE is to provide this basic level to the vari- 600 Corporate Park Drive, St. Louis, MO 63105, US. Tel: +1 (314) 512 5000; Fax: +1 (314) 512 5220; Website: ous groups, such as the aged, the unem- www.enterprise.com/fleet. SVP: Steve Bloom; Direct Tel: +1 (314) EQUIPMENT 512 3930; Email: [email protected]; VP, Finance & Administration: ployed and the disadvantaged. Yet Steve Usselmann; Direct Tel: +1 (314) 512 2332; Email: because we have not developed this basic [email protected]. LEASING Activities: Member of the American Automotive Leasing policy, health care today is being driven Association. all it the calm before the storm. primarily by economics, rather than Equipment Financing Group, Inc. For those of us in the US moving forward in a logical manner 2037 W. Bullard Ave, Suite 514, Fresno, CA 93711, US. Tel: +1 (559) 438 5146; Fax: +1 (559) 438 5386; Email: [email protected]. C healthcare equipment leasing toward the fulfilment of national health Contact: Christopher Jones. industry, this is the best way to charac- policy objectives.” Activities: Member of the United Association of Equipment Leasing (UAEL). terise the past year in the business. The This insight should come as no sur- Equipment Leasing & Finance Foundation market appeared stable, with increasing prise to anyone who has been following 4301 N. Fairfax Drive, Suite 550, Arlington, VA 22203, US. Tel: +1 use of lease financing by hospitals and the evening news or reading the daily (703) 516 8363; Email: [email protected]; Website: www.leasefoundation.org. Executive Director: Lisa A. Levine, CAE. medical practices. newspapers. It reflects a consensus of the Activities: Non-profit organisation, provides vision for the equipment leasing and finance industry through future-focused But just off the radar, a great storm is problems facing the US healthcare indus- information and research. The foundation is donor-supported, a 501 brewing. It is set to arrive most likely in try today. (c)3 organisation. Corporate donors of US$2,500 or more receive five free, early-release reports a year. Others will need to pay 2007 and will generate enormous What is stunning about the comment US$200 for Foundation reports. changes within the overall US healthcare is that it was made in 1985. Equipment Leasing Association market and for lessors currently servicing Flash forward 20+ years and health- 4301 North Fairfax Drive, Suite 550, Arlington VA 22203-1627, US. Tel: +1 (703) 527 8655; Fax: +1 (703) 527 2649; Email: it. care costs continue to spiral out of con- elaonline.com. The impetus for the storm was trol. Congress and several Admin- Activities: Member of the International Finance and Leasing Association. summed up by Herman H. Kohlman, istrations have refused until now to Equipment Leasing Specialists, Inc. former national chairman of the address many issues, particularly the 7600 Grand River, Suite 150, Brighton, MI 48116, US. Tel: +1 (810) Healthcare Financial Management unsustainable increases in Medicare 229 2075; Fax: +1 (810) 229 2296; Email: [email protected]. Contact: Randy Montrose, CLP. Association, who said, “One of the costs. Activities: Member of the United Association of Equipment Leasing major reasons that the healthcare indus- The country now faces the prospect of (UAEL). try has had to occupy a reactive position draconian measures that will significant- Euromoney Lease Training, New York 225 Park Avenue South, 8th Floor, New York, NY 10003-1604, US. is the absence in this country of a nation- ly alter the character of several health- Tel: +1 (212) 361 3299; Fax: +1 (212) 361 3499; Email: [email protected]. Contact: Matthew Know. al health policy. We are the only major care segments and will dramatically Activities: Member of ELA/NASBA Accreditation. Training of leasing nation in the western hemisphere that affect the financial wherewithal of hospi- professionals. has not, in a formal way, come to a con- tals, corporations and physician prac- clusion on what basic level of health care tices across the board. we propose to provide for the members Rumblings of changes began to 485 469-507.qxd 11/27/06 12:09 PM Page 486 United States appear in early 2006. They will continue Medicare and Medicaid Services (CMS) to build as the full impact of the has proposed replacing the current Leasing services Medicare reimbursement modifications charge-based Health Specific Relative become clearer in 2007 and are made Value methodology with a cost-based Excell Financial Services, Inc. 9137 East Mineral Circle, Suite 100, Centennial, CO 80112, US. Tel: public. There are two areas of particular system. Additionally, the list of DRGs +1 (303) 708 0880; Fax: +1 (303) 736 4032; Email: [email protected]. Contact: David O. Steckelberg. concern to lessors – outpatient diagnostic would be modified to include a severity Activities: Member of the National Association of Equipment Lease imaging and home healthcare – in both rating. Brokers (NAELB). of which the leasing industry has sub- The goal is to eliminate imbalances by Felsberg, Pedretti, Mannrich e Aidar, Advogados e stantial focus and exposure. pushing charges into other areas. This is Consultores Legais 1725 I Street, N.W., Suite 300, Washington D.C., 20006, US. Tel: +1 On a positive note, new healthcare an outgrowth of significant scrutiny of (202) 331 2492; Fax: +1 (202) 331 2493; Email: [email protected]; Website: www.felsberg.com.br. information technology requirements are physician-owned facilities. The number Managing Partner: Thomas Benes Felsberg. Partners: Maria da on the horizon that will provide great of DRGs would increase from 526 to Graça de Brito Vianna Pedretti, Nelson Mannrich, Carlos Miguel Castex Aidar, Guilherme Fiorini Filho, Cláudia Haidamus Perri, opportunities for those in the leasing 861 in 2008. Case severity would be Ricardo Wanderley Mano Sanches, Roberto Wilson Renault Pinto, Antonio Ivo Aidar, Paulo Sigaud Cardozo, David Leining Meiler, Joel business. ranked by a score of 1–4 for minor, Luis Thomaz Bastos.