Final Project: Capital Structure Strategies in Health Care Financial System
Objective: For this assignment, you will create a Capital Structure Strategies for a Community Health Center that you will be able to choose (Any Health Care Facility).The Capital Structure Strategies refers to the way a corporation finances its assets through some combination of equity, debt, or hybrid securities. A firm’s capital structure is the composition or ‘structure’ of its liabilities. For example, a firm that sells 20 billion dollars in equity and 80 billion dollars in debt is said to be 20% equity-financed and 80% debt-financed. The firm’s ratio of debt to total financing, 80% in this example, is referred to as the firm’s leverage. In reality, capital structure may be highly complex and include dozens of sources. Gearing Ratio is the proportion of the capital employed by the firm which comes from outside of the business, such as by taking a short term loan.
You are encouraged to choose (Any Health Care Facility: Hospital, Doctor Office, Emergency Care Center, etc.).
ASSIGNMENT GUIDELINES (2 points /10%):
Students will create a Capital Structure Strategies for the Institution of your choosing. There is an advantage to financing with debt (the tax benefits of debt) and that there is a cost of financing with debt (the bankruptcy costs and the financial distress costs of debt). The marginal benefit of further increases in debt declines as debt increases, while the marginal cost increases, so that a firm that is optimizing its overall value will focus on this trade-off when choosing how much debt and equity to use for financing. Empirically, this theory may explain differences in Debt/Equity ratios between industries, but it doesn’t explain differences within the same industry.
You need to read the article (in the additional weekly reading resources localize in the Syllabus and also in the Lectures link) assigned for this week and develop a 8-10-page paper reflecting your understanding and ability to apply the readings to your Health Care Setting. Each paper must be typewritten with 12-point font and double-spaced with standard margins. Follow APA format when referring to the selected articles and include a reference page.
EACH PAPER SHOULD INCLUDE THE FOLLOWING: |
Introduction (5 points / 25%) Offer an abstract that provide a brief outlook of the protocol and explaining in your own words what is meant by a Capital Structure Strategies in Health Care Financial System
2. Your Capital Structure Strategies in Health Care Financial System (10 points 50%)
a. Presentation Page:
PROJECT NAME
ORGANIZATION NAME
BUSINESS ADDRESS
CITY, ST, ZIP
TELEPHONE NUMBER
FACSIMILE NUMBER
WEBSITE ADDRESS
EMAIL ADDRESS:
b.Capital Structure Theory: Definition, Explanation and uses.
c.The Capital Structures Strategy of leading integrated health care system.
3. Conclusion (3 points / 15%)
Briefly recapitulate your thoughts & conclusion to you Capital Structure Strategies. How did this plan impact your thoughts on Health Care Administrator and Health Care Finance?
Evaluation will be based on how clearly you respond to the above, in particular:
Expert Solution Preview
Introduction:
For this assignment, students are required to create a Capital Structure Strategies plan for a Health Care Facility, such as a Hospital, Doctor’s office, or Emergency Care Center. The Capital Structure Strategies refer to the way a corporation finances its assets through a combination of equity, debt, or hybrid securities, and its capital structure is the composition or ‘structure’ of its liabilities. Students are encouraged to choose any Health Care Facility of their choosing.
Answer:
The objective of this assignment is to create a Capital Structure Strategies plan for a Health Care Facility. Students are expected to read the article assigned for the week and develop an 8-10-page paper explaining and applying the readings to their chosen Health Care setting.
The paper should include an introduction that provides a brief outlook of the protocol and explains in the student’s words what is meant by a Capital Structure Strategies plan in the Health Care Financial System. The introduction carries a weight of 5 points or 25%.
The Capital Structure Strategies in the Health Care Financial System is the most important part of the paper and accounts for 10 points or 50% of the paper. It should include a presentation page, the definition, explanation, and uses of capital structure theory, and the capital structure strategy of leading integrated health care systems.
The paper should provide a conclusion summarizing the students’ thoughts and conclusion to their Capital Structure plan, and how it impacts their thoughts on Health Care Administration and Health Care Finance. The conclusion carries a weight of 3 points or 15%.
The evaluation of the paper will be based on how clearly the students respond to the above instructions, particularly in the introduction, Capital Structure Strategies, and conclusion. The paper must be typed with 12-point font and double-spaced with standard margins, following APA format when referring to the selected articles and including a reference page.
