title: Financing strategic healthcare facilities: the growing attraction of alternative capital.
abstract: Community health system leaders often dismiss use of alternative capital to finance strategic facilities as being too expensive and less strategically useful, preferring to follow historical precedent and use tax-exempt bonding to finance such facilities. Proposed changes in accounting rules should cause third-party-financed facility lease arrangements to be treated similarly to tax-exempt debt financings with respect to the income statement and balance sheet, increasing their appeal to community health systems. An in-depth comparison of the total costs associated with each financing approach can help inform the choice of financing approaches by illuminating their respective advantages and disadvantages.
authors.affiliation: Division of Health Policy and Management, School of Public Health, University of Minnesota, Minneapolis, USA. zisme006@umn.edu
authors.forename: Daniel K
authors.initials: DK
authors.lastname: Zismer
authors.forename: James
authors.initials: J
authors.lastname: Fox
authors.forename: Paul
authors.initials: P
authors.lastname: Torgerson
mesh_terms: D002202:Capital Financing / Q000379:methods*; D003153:Community Health Services / Q000191:economics; D003363:Cost Control; D007860:Leasing, Property / Q000191:economics; D019464:Tax Exemption; D014481:United States