Remember, since we are discussion healthcare financing options, this means we ar
ID: 2613066 • Letter: R
Question
Remember, since we are discussion healthcare financing options, this means we are looking at purchasing land, buildings, or equipment for our organization with someone else's money since we do not have our own (or choose not to utilize it for these purchases).
Therefore, discuss the various types of healthcare financing options for the for-profit and not-for-profit healthcare organizations. Next, add-in the advantages/disadvantages for each, but first from the investor's perspective, and then from the issuer's perspective (the healthcare organization).
Explanation / Answer
For the for-profit healthcare organizations the best financing options are the private investors. It can also go public as the people would invest in a profit making organization. The private investors would fund the organization on the basis of social responsibility. The other option would be to opt for a loan from the bank. If a proper decision would be made considering the cost of capital funds can be raised from a more feasible source.
For the not-for-profit organizations the feasible financing option would be government aid or funding. Government realizes the need for good healthcare organization. Moreover, if it is a not-for-profit organization then the government would be willingly funding the organization as it is beneficial for the society as a whole. The other financing options would not be feasible comparatively.