Healthcare Finance: Mechanisms for Evaluating Financial Health of Health Care Organizations Name Course Instructor Date Background Hospitals and medical centers may either source for funds internally through revenue collected or externally through debts, donations, grants and gifts. The provision of grants tends to be competitive and funding may be limited while donations are unpredictable. Big hospitals tap into the long-term debts to access capital, but the credit characteristics of the organization influences the decision to choose debt-financing (Paterson & Telyukov, 2014). It is necessary to evaluate the need for financing to identify optimal financing options, with the leadership at Pearland Medical Center evaluating the capacity of the organization to use different funding options. Foundations look into the financial situation of medical centers focusing more on the income statements to determine how the revenue streams and expenses affect the net income levels. It is necessary for any organiz
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