title: Big plans.
abstract: In Elmhurst Memorial Healthcare's capital planning method: Future replacement costs of assets are estimated by inflating their historical cost over their lives. A balanced model is created initially based on the assumption that rates of revenue growth, inflation, investment income, and interest expense are all equal. Numbers then can be adjusted to account for possible variations, such as excesses or shortages in investment or debt balances.
authors.affiliation: Elmhurst Memorial Healthcare, IL, USA. kfitch@ehmc.org
authors.forename: Kevin F
authors.initials: KF
authors.lastname: Fitch
authors.forename: James F
authors.initials: JF
authors.lastname: Doyle
mesh_terms: D002202:Capital Financing / Q000191:economics / Q000458:organization & administration*; D004469:Economics, Hospital; D014481:United States