Banner Health in a non-profit based in Phoenix, Arizona with Peter Fine as the president. They serve as a nonprofit, existing to offer health care services to the community, instead of placing emphasis on generating profits. That means that each dollar they earn is reinvested into a variety of things like new hospital beds, expansion of patient care services, physician services, new technologies, and paying employee's salaries (Banner Health - www.BannerHealth.com, 2015). Hospitals like these are meant to aid people in terms of getting adequate medical treatment and care. However, NFP hospitals like Banner Health also have to realize the current state of the economy and may have to make some changes in order to continue existing within the current healthcare climate.
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Investor-owned hospitals are more business-oriented than NFP hospitals like Banner Health. Different from earlier investigations based on comparatively small samples, the findings from a big, multi-year sample show NFP and IO hospitals arrange their capital inversely and marginal benefits as well as costs of debt remain differentially influenced by risk, profitability, growth, and size. IO hospitals use substantially and significantly more debt versus their NFP peers. "The capital structure of NFP hospitals is not as sensitive to risk but more sensitive to profitability. Growth and size also have distinctly different relationships to the use of debt. As NFP hospitals grow, and asset bases get larger, the institutions use more debt" (Turner, Broom, Elliott & Lee, 2015, p. 1). This means the IO hospitals use less debt if...
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