Capital Financing in Health Care Essay by Rhicks

Capital Financing in Health Care
Examines the importance of capital financing in the health care field.
# 60195 | 746 words | 3 sources | APA | 2005 | US


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Description:

As in any business, capital financing in the health care field, is very important. Without proper financial planning, budgeting and working capital, a company is headed for financial ruin. This paper shows that obtaining capital can be done in various ways and should be well planned and executed. If properly planned, a business has a good chance of survival. Without planning, bankruptcy could be the result.

From the Paper:

"St. Vincent's Catholic Medical Centers, a New York healthcare provider, announced that it would file Chapter 11 bankruptcy protection after losing its working capital loan. St. Vincent's defaulted on $30 million of its pre-petition loan committed by HFG (Healthcare Finance Group), which had agreed to provide a total of $100 million, in DIP (Debtor-in-Possession) financing. DIP financing is used in bankruptcy so that while the bankruptcy is being processed the business will have working capital for the duration. In many cases, DIP financing is considered attractive because it is done only under order of the Bankruptcy Court and allows the company to execute a Plan of Reorganization (POR)."

Cite this Essay:

APA Format

Capital Financing in Health Care (2005, August 13) Retrieved April 21, 2019, from https://www.academon.com/essay/capital-financing-in-health-care-60195/

MLA Format

"Capital Financing in Health Care" 13 August 2005. Web. 21 April. 2019. <https://www.academon.com/essay/capital-financing-in-health-care-60195/>

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