Beyond the Reagan tax proposal: hospital capital management strategies
Harris, J.P.
Healthcare Financial Management Journal of the Healthcare Financial Management Association 39(11): 80-84
1985
ISSN/ISBN: 0735-0732 PMID: 10274116 Document Number: 256814
If Reagan's tax proposal is implemented, low-cost tax-exempt revenue bonds, advance refunding, and the investment tax credit would be eliminated. Such possibilities could cause a serious blow to the hospital industry--the cost of capital could rise significantly, the hospital's ability to manage debt could decrease, and joint ventures could become less attractive. However, in light of the known elements in Reagan's proposal, certain financing strategies can be adopted immediately that will help offset these possibilities and help ensure long-term survival.