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 tell apartment company. As of 1981, HCA owned or managed 349 hospitals in the united States and overseas. During the 1970s, HCA achieved its growth by scholarship of existing hospitals and construction of rising ones. During the period of 1968-1981, it constructed 70 new-sprung(prenominal) and replacement facilities and acquired or lowtake the remaining 279 of its hospital. Each year HCA evaluated galore(postnominal) potential encyclopedisms and areas for construction, with the criteria for natural selection including the maneuver communitys need for wellness care services, the quality of the target hospitals medical staff and personnel, the creation growth pattern i n the area served, the facilities suitability for prospective refinement, and the hospitals overall financial position. Although HCAs procedure generated substantial cash for reinvestment, quench it needed external financing for its ambitious construction and acquisition program. In early pointedness of development, external financing were in the main from revolving credits to finance hospitals under construction, industrial revenue bonds and in camera placed, long-term mortgage loans fro insurance companies funded completed hospitals and acquisitions.

Other sources were punishing to tap at first, repayable to the newness of propriety hospital sedulousness and the small size and shortsighted track record of HCA, and the ! short image of hospital prudence companies at that time. However, HCA could finally manage it as the industry matured, and HCAs steadfast performance became recognized. II.Key Issues Since its establishment, HCAs growth has been contributed by acquiring hospitals, constructing new ones, expansion of services, and the signing of new management contracts. Similarly to any another(prenominal) businesses that new... If you want to get a upright essay, order it on our website: OrderEssay.net

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