Essay about Service Line Development Task 1

774 Words Dec 15th, 2014 4 Pages
For a hospital such as Trinity Community Hospital (TCH) to have the space necessary to accommodate the constant influx of patients they must expand. To expand, plans must be in order for utilization of the expansion, funding must be allocated appropriately to ensure a smooth expansion, and most importantly, a decision between building, buying, or leasing must be made. A. Advantages and Disadvantages of Hospital Expansion Project 1. Advantages a. Building space for the new orthopedic service line * Having the new orthopedic service line built will allow the hospital to customize their space; location of imaging machines, therapy, diagnostics, inpatient, and outpatient. * Cost is lower than …show more content…
* Traffic will be hindered due to machinery and construction staff. * Starting cost will be high. * Building a new expansion will require licensing, permits, and routing new utility lines. The process will be slow; resulting in the hospital loosing precious time that can be used to provide patient care. e. Buying space for the new orthopedic service line * High cost for purchasing. $700k. “Purchasing tends to require a higher monetary outlay initially in addition to having to finance your purchase through a lender” (Newman, 2006). * Cannot customize the building to suit the hospital’s needs. * Unanticipated repairs for a building that may be old. Remodeling costs will be added to cost of the building. f. Leasing space for the new orthopedic service line * The hospital does not own the building. “Historically low interest rates and altered accounting standards are motivating business owners in all phases of growth to rethink their leases” (Creed, 2013.). * The lease is a triple net lease resulting in the hospital being responsible for the entire repair as well as taxes on the building. * The hospital may not be able to change the building to their desire unless they receive approval from the owner, resulting in delays.

With considerable review of the advantages and