Financing strategic healthcare facilities: the growing attraction of alternative capital.

Daniel K. Zismer, James Fox, Paul Torgerson

Research output: Contribution to journalArticlepeer-review


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.

Original languageEnglish (US)
Pages (from-to)92-99
Number of pages8
JournalUnknown Journal
Issue number5
StatePublished - May 2013


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