Case study: "Hospital Corporation of America" by Kester, W. Carl

TABLE OF CONTENTS I.Introduction1 II.Key Issues2 III.Recommendations6 IV.References7 I.Introduction Hospital Corporation of America (HCA) is propriety, infirmary concern company founded in Nashville, Tennessee in 1968 with only one, 150-bed hospital and then grew to become the nations largest hospital attention company. As of 1981, HCA have or decimated 349 hospitals in the get together States and overseas. During the 1970s, HCA achieved its growth by eruditeness of existing hospitals and construction of wage increase ones. During the period of 1968-1981, it constructed 70 refreshful and replacement facilities and acquired or lowtake the remain 279 of its hospital. Each year HCA evaluated many potential acquisitions and areas for construction, with the criteria for natural filling including the maneuver communitys need for health care services, the quality of the butt hospitals medical staff and personnel, the state growth pattern in the area served, the facilities suitability for early refinement, and the hospitals overall financial position. Although HCAs surgical process generated substantial cash for reinvestment, soothe it needed external financing for its ambitious construction and acquisition program. In early power point of development, external financing were chiefly from revolving credits to finance hospitals nether construction, industrial revenue bonds and in camera placed, long-term mortgage loans fro amends companies funded completed hospitals and acquisitions.

Other sources were elusive to tap at first, repayable to the newness of propriety hospital application and the small size and forgetful track record of HCA, and the ugly image of hospital counseling companies at that time. However, HCA could finally manage it as the industry matured, and HCAs cockeyed performance became recognized. II.Key Issues Since its establishment, HCAs growth has been contributed by acquiring hospitals, constructing new ones, expanding upon of services, and the signing of new management contracts. Similarly to any another(prenominal) businesses that new... If you emergency to get a right essay, order it on our website: Ordercustompaper.com

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