Elijah hospital provides both cardiac diagnostic services as well as rehabilitation programs. Even though the hospital’s patient volume is steady and increasing, the profit margin is dropping. In this simulation, we will evaluate and assess the funding options for obtaining a new or refurbished medical equipment.
Phase 1: Capital Shortage:
I selected these options because I felt it was an excellent opportunity for the association to cut down its cost and save money. By reducing the agency staff, the organization will be saving a lot of money. The other cutting option, that I selected, was hiring unlicensed ...view middle of the document...
I selected the operating loan because it has a lower upfront payment and lower monthly installments. Leasing allows businesses to address the problem of obsolescence. Therefore, when the technology advances and the machine turn out outdated the terms of the loan would allow the machine to be replaced with a new updated model.
Tax Exempt Revenue bond has an interest rate of 4.18% with ten-year prepayment penalty. Tax Exempt Revenue Bonds is not the best choice, for it has a usable time set of three years as well as an escrow against gross revenue. I chose HUD 242 loan because it has the lowest interest rate of 3.9% with eight years of repayment installment and net present value of $221,221 that impeccably suits the proposed income from the expansion.
From this simulation, I learned the importance of leasing or buying a new or refurbished medical equipment. While doing the simulation, I found Funding Options for Equipment very challenging. It took me some time to comprehend the time and research needed in order to purchase a new X-ray equipment. Many options were available, and the type of the machine also needed to be considered before making a decision. After going through...