Health Care Conclusion Essay Example

justify">An operating lease is a lease which the manufacture provides the equipment, financing and maintenance. With this type of lease the organization pays the lessor in two different ways, either under conventional terms of a fixed payment on a monthly basis. The other type of lease is a pay per use lease. A fixed amount would be paid based on the use of the equipment. For example an x-ray machine could be leased and the organization would a fee depending on how many x-rays they take per month or year.

The next type of lease is the financial lease. This lease does not include a maintenance fee and this type of lease is like a rent to own when the lease is paid in full the ownership is transferred to the organization. Discuss the terms short-term borrowing and long-term financing. Short-term borrowing means a loan take out by a person and this loan will be paid back within a short amount of time with a very high interest rate. These types of loans include pay-day loans. They are quick and paid back within a month or weeks.

Long-term financing means a financing provided to an organization for a period longer than a year. This is done typically for companies who do not have enough capital or for potential home owners. Mortgages are considered long-term loans. What are the primary sources of equity financing for not-for-profit healthcare organizations? The primary sources of equity financing are from corporations, foundations, individuals and bequests. This money totals in the billions for each organization.

The capital budgeting process occurs in several stages, but generally includes what? This

includes all the steps included in the capital project analysis. It also includes what monies are going to be spent or saved on projects or programs. Discuss and list the three discounted cash flow methods. * Net present value- “Capital financing alternative is a useful way to find other ways of capital financing. The NPV equals discounted cash inflows less discounted cash outflows (Cleverley, Song, & Cleverley, 2011) . Profitability index – “Capital expenditures with financial benefits” this method is to determine how much money is going to be made or how much money is going to be saved (Cleverley, Song, & Cleverley, 2011).

* Equivalent annual cost – “Capital expenditures with nonfinancial benefits” this means finding out how much projects in which the organization is going to cost financially as well as make the company money. Although there is no money involved this is an analysis to determine the amount of costs (Cleverley, Song, & Cleverley, 2011).