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Healthcare is expensive. It takes an enormous amount of capital to secure the necessary resources to...

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Finance

Healthcare is expensive. It takes an enormous amount of capitalto secure the necessary resources to finance the care deliverycontinuum. The cost and sources of that capital is critical tobeing able to understand the cost of conducting business in generaland also forms the basis on which future projects can be evaluatedon a quantitative basis (e.g., capital budgeting, lease financing,etc.).

For this discussion, do the following: Consider you aredetermining which type of financing to be used for a new project inyour hospital. Your hospital is doing financially well and hasmoney that can be used for financing—it also has a top creditrating that could be used for debt financing as well. Review thepros and cons of each financing opportunity. Discuss your selectionfor financing which would be optimal for your hospital. Why did youchoose this option?

Answer & Explanation Solved by verified expert
4.2 Ratings (737 Votes)
Health care sector is considered to be essential and hospital is one of the most important segment of this industry Hospitals are very important It should be available to each irrespective of status money etc For starting a new project in the hospital I would go for a mix financing I will use both the equity and debt I will use 70 per cent as debt and the rest as equity This is so because hospitals are not profit oriented entity at least it should not be Using 100 per cent equity might not be advisable as the objective    See Answer
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