Cost of capital to the hospital sector.

dc.contributor.author

Sloan, FA

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Valvona, J

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Hassan, M

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Morrisey, MA

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Netherlands

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2010-03-09T15:32:56Z

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1988-03

dc.description.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.

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application/pdf

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http://www.ncbi.nlm.nih.gov/pubmed/10302653

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0167-6296

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https://hdl.handle.net/10161/1953

dc.language

eng

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en_US

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Elsevier BV

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J Health Econ

dc.subject

Capital Expenditures

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Capital Financing

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Costs and Cost Analysis

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Economics

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Economics, Hospital

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Financial Management

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Hospitals, Proprietary

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Hospitals, Voluntary

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Medicaid

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Medicare

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Models, Theoretical

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Ownership

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Statistics as Topic

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United States

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Cost of capital to the hospital sector.

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Journal article

pubs.author-url

http://www.ncbi.nlm.nih.gov/pubmed/10302653

pubs.begin-page

25

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45

pubs.issue

1

pubs.organisational-group

Center for Child and Family Policy

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Center for Population Health & Aging

pubs.organisational-group

Duke

pubs.organisational-group

Duke Population Research Center

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Duke Population Research Institute

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Economics

pubs.organisational-group

Global Health Institute

pubs.organisational-group

Institute of Public Policy

pubs.organisational-group

Institutes and Provost's Academic Units

pubs.organisational-group

Public Policy Studies

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Sanford School of Public Policy

pubs.organisational-group

School of Nursing

pubs.organisational-group

School of Nursing - Secondary Group

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Trinity College of Arts & Sciences

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University Institutes and Centers

pubs.publication-status

Published

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7

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