title: Capital planning for clinical integration.
abstract: When assessing the financial implications of a physician alignment and clinical integration initiative, a hospital should measure the initiative's potential ROI, perhaps best using a combination of net present value and payback period. The hospital should compare its own historical and projected performance with rating agency median benchmarks for key financial indicators of profitability, debt service, capital and cash flow, and liquidity. The hospital should also consider potential indirect benefits, such as retained outpatient/ancillary revenue, increased inpatient revenue, improved cost control, and improved quality and reporting transparency.
authors.affiliation: DGA Partners, Philadelphia, USA. dgrauman@dgapartners.com
authors.forename: Daniel M
authors.initials: DM
authors.lastname: Grauman
authors.forename: Gerald
authors.initials: G
authors.lastname: Neff
authors.forename: Molly Martha
authors.initials: MM
authors.lastname: Johnson
mesh_terms: D002202:Capital Financing; D019033:Delivery of Health Care, Integrated / Q000191:economics; D004469:Economics, Hospital / Q000458:organization & administration*; D018578:Hospital-Physician Relations; D014481:United States