title: The discount rate for capital expenditure analysis in health care.
abstract: The appropriate discount rate for evaluation of capital expenditures depends on leverage, taxation, cost-based reimbursement, and risk. A method is presented to account for these effects that is both practical and consistent with theory.
authors.affiliation: Department of Health Services Management and Policy, University of Michigan, Ann Arbor.
authors.forename: J R
authors.initials: JR
authors.lastname: Wheeler
authors.forename: D G
authors.initials: DG
authors.lastname: Smith
mesh_terms: D002201:Capital Expenditures; D002202:Capital Financing; D003365:Costs and Cost Analysis; D004467:Economics; D005376:Financial Management; D005377:Financial Management, Hospital; D006801:Humans; D008962:Models, Theoretical; D012051:Reimbursement Mechanisms; D012306:Risk; D014481:United States