Tags

Type your tag names separated by a space and hit enter

Cost of capital to the hospital sector.
J Health Econ. 1988 Mar; 7(1):25-45.JH

Abstract

This paper provides estimates of the cost of equity and debt capital to for-profit and non-profit hospitals in the U.S. for the years 1972-83. The cost of equity is estimated using, alternatively, the Capital Asset Pricing Model and Arbitrage Pricing Theory. We find that the cost of equity capital, using either model, substantially exceeded anticipated inflation. The cost of debt capital was much lower. Accounting for the corporate tax shield on debt and capital paybacks by cost-based insurers lowered the net cost of capital to hospitals.

Authors

No affiliation info availableNo affiliation info availableNo affiliation info availableNo affiliation info available

Pub Type(s)

Journal Article
Research Support, U.S. Gov't, P.H.S.

Language

eng

PubMed ID

10302653

Citation

Sloan, F A., et al. "Cost of Capital to the Hospital Sector." Journal of Health Economics, vol. 7, no. 1, 1988, pp. 25-45.
Sloan FA, Valvona J, Hassan M, et al. Cost of capital to the hospital sector. J Health Econ. 1988;7(1):25-45.
Sloan, F. A., Valvona, J., Hassan, M., & Morrisey, M. A. (1988). Cost of capital to the hospital sector. Journal of Health Economics, 7(1), 25-45.
Sloan FA, et al. Cost of Capital to the Hospital Sector. J Health Econ. 1988;7(1):25-45. PubMed PMID: 10302653.
* Article titles in AMA citation format should be in sentence-case
TY - JOUR T1 - Cost of capital to the hospital sector. AU - Sloan,F A, AU - Valvona,J, AU - Hassan,M, AU - Morrisey,M A, PY - 1988/2/9/pubmed PY - 1988/2/9/medline PY - 1988/2/9/entrez SP - 25 EP - 45 JF - Journal of health economics JO - J Health Econ VL - 7 IS - 1 N2 - This paper provides estimates of the cost of equity and debt capital to for-profit and non-profit hospitals in the U.S. for the years 1972-83. The cost of equity is estimated using, alternatively, the Capital Asset Pricing Model and Arbitrage Pricing Theory. We find that the cost of equity capital, using either model, substantially exceeded anticipated inflation. The cost of debt capital was much lower. Accounting for the corporate tax shield on debt and capital paybacks by cost-based insurers lowered the net cost of capital to hospitals. SN - 0167-6296 UR - https://www.unboundmedicine.com/medline/citation/10302653/Cost_of_capital_to_the_hospital_sector_ L2 - https://linkinghub.elsevier.com/retrieve/pii/0167-6296(88)90003-3 DB - PRIME DP - Unbound Medicine ER -