Financial leases in the hospital industry. An analysis of California hospitals.
Using California hospital data, this study examined the extent to which capital leases displace debt in the hospital industry. Moreover, it analyzed how hospital and financial variables affect utilization of lease financing. In contrast to the theoretic belief that lease financing displaces debt financing, the results showed a greater use of debt with leases. The study also found smaller, free-standing facilities with a greater investment in plant and equipment employed the lease option.
Department of Health Administration, Williamson Institute, School of Allied Health, Virginia Commonwealth University, Richmond 23298.
M J
MJ
McCue
D002140:California; D002202:Capital Financing / Q000379:methods*; D004865:Equipment and Supplies, Hospital / Q000191:economics*; D005376:Financial Management / Q000379:methods*; D005377:Financial Management, Hospital / Q000379:methods*; D006742:Hospital Bed Capacity; D007349:Insurance, Health, Reimbursement; D007860:Leasing, Property; D008484:Medicaid / Q000191:economics; D006278:Medicare / Q000191:economics; D014481:United States