Today, maximizing the use of your limited capital is especially important because:
- margins continue to be squeezed,
- access to capital has become more difficult,
- the cost of capital continues to rise,
- the cost of building projects continues to increase due to stubbornly high inflation, and
- healthcare disruptors have raised the stakes on ambulatory strategy.
Capital investment needs are also increasing as health systems continue to increase their ambulatory footprints, driving them to look for creative ways to execute projects by exploring all the financial levers they can pull. In this article, Ankura Consulting Group models a variety of scenarios and utilize financial metrics such as the payback period, the internal rate of return (IRR), and net present value (NPV) to evaluate and prioritize options, as well as the impact such options have on key financial ratios including debt ratio, long-term debt to capitalization, liquidity, and days cash on hand. Read more.
