Mercy Medical Hospital Debt Portfolio Management Strategies.
Mercy Medical Hospital Debt Portfolio Management Strategies: As the business environment grows unpredictably difficult, and as currently available financing options grow slimmer, businesses need to find different innovative ways in which they do business (Sloan et al 1988).
Undoubtedly, companies must learn to convert their creditors to be their strategic capital partners. As well, companies must come up with a debt policy that recognizes debts as a healthy platform through which to advance them (Peterson 1999).
There is the need to move away from the ordinary, to embrace change as a matter of necessity, and to develop within the realms of the fierce competition that organizations currently exist. Like many other institutions in corporate USA, Mercy Hospital is recovering from the effects of the current global recession.
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As well, the hospital should give priority to those projects that are self-liquidating. And which are backed by a realistic financial plan with regard to debt servicing, meeting perceived operational costs etc.
In addition, the hospital should commit itself to prudent methods of achieving this and as such should maintain a competent financial team (Kastor & Adashi 2011).
Lastly, the hospital should adopt the use of benchmarks in evaluating itself against other like hospitals within its peer group in order to determine trends, strengths, and weaknesses concerning its debt portfolio and economic soundness of the institution on a regular basis.
Auerbach, A. J., & King, M. A. (1983). Taxation, portfolio choice, and debt-equity ratios: A general equilibrium model. The Quarterly Journal of Economics, 98(4), 587-609.
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