The body of the resultant paper should be 5-8 pages APA format and Plagiarism free please. Applicable spreadsheets should be attached to support your decisions. The assignment should include at least 5 relevant peer-reviewed academic or professional references published within the past 5 years.
The board of directors of your for-profit hospital has been approached by a nonprofit hospital to consider a joint venture to take over their business resulting in a larger for-profit medical center status. You have been asked to construct a financial risk analysis for this conversion. Using course materials, including your text and the Internet, and principles of financial risk analysis, evaluate the considerations that a nonprofit hospital has in considering the conversion to a for-profit hospital.
Consider the following options in support of your decision:
- Projected profit and loss statements
- Retention of estimates
- Selected cost of capital
- Other spreadsheets and calculations you feel are needed to support your decision
Consider the following topics in your discussion:
- Key characteristics of nonprofit hospitals that differ from for-profit hospitals
- Include the characteristics required to maintain a nonprofit status.
- The need for shifts in corporate structure required for survival in this environment, including safety net requirements and responsibilities
- Potential reasons driving both organizations and considerations between an outright merger verses a corporate alliance or joint venture.
- Assessment of the payer mix, financial benchmarks of nonprofit and for-profit hospitals
- Consider uncompensated care burdens within the for-profit model
- Proffer a decision based on your analysis of whether the organization should convert, create a joint venture, or decline the offer with rationale and justification.
Your paper must include your financial information derived in your risk analysis as an appendix included after the Reference page.