AN OPERATIONAL APPROACH TO THE EVALUATION OF LEASES BY HOSPITALS

Aharon R. Ofer

doi:10.1111/j.1540-5915.1979.tb00023.x

AN OPERATIONAL APPROACH TO THE EVALUATION OF LEASES BY HOSPITALS

Aharon R. Ofer^*

^*Corresponding author for this work

Coller School of Management

Research output: Contribution to journal › Article › peer-review

Abstract

The evaluation of the lease versus purchase alternative by not‐for‐profit hospitals presents a problem that stems from the interaction between investment and financial decisions. This paper provides an analytical framework that resolves this issue by neutralizing the impact of the lease contract on the hospital's financial structure and debt capacity. The formulation incorporates the special operating characteristics of not‐for‐profit hospitals: namely, they are not subject to federal income tax, and part of their revenue is generated through cost‐based reimbursement.

Original language	English
Pages (from-to)	258-267
Number of pages	10
Journal	Decision Sciences
Volume	10
Issue number	2
DOIs	https://doi.org/10.1111/j.1540-5915.1979.tb00023.x
State	Published - Apr 1979

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AN OPERATIONAL APPROACH TO THE EVALUATION OF LEASES BY HOSPITALS

Abstract

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