Big plans
Fitch, K.F.; Doyle, J.F.
Healthcare Financial Management Journal of the Healthcare Financial Management Association 59(9): 124-8 130 132
2005
ISSN/ISBN: 0735-0732 PMID: 16184963 Document Number: 588143
In Elmhurst Memorial Healthcare's capital planning method: Future replacement costs of assets are estimated by inflating their historical cost over their lives. A balanced model is created initially based on the assumption that rates of revenue growth, inflation, investment income, and interest expense are all equal. Numbers then can be adjusted to account for possible variations, such as excesses or shortages in investment or debt balances.