Amt2 Task 1 Service Line Development

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AMT2 Task1 Service Line Development A1a. Building Advantages Trinity Community Hospital is a 150 bed hospital that is located in the south. The hospital is located on a 25 acre property and is looking to expand. The hospital is 25 years old and the 25 acre property contains four medical office buildings and the hospital itself. Trinity is looking to add a new orthopedic building and analyzing the advantages can help with getting to the most accurate decision. The advantages for adding a new building space for a new orthopedic service line are as follows; Currently Trinity Community Hospital can build on their own property and have control over every aspect of the construction, including adding parts that will involve the community. The cost of the new building will be $600,000 if built on their campus. Building a new facility will attract new doctors, new donors, and new employees due to the fact that people like new. Recruiting doctors can sometimes be difficult and this would be an advantage for Trinity Community Hospital. Mortgage payments will be very similar to leasing payments, the difference being that a mortgage will eventually be paid off. Building their own orthopedic service line will allows for the hospital to have complete control over the future of the orthopedic service line. A1b. Buying Advantages The other options available to Trinity Community Hospital (TCH) is buying a freestanding building near the current property owned by the hospital. Purchasing this new building will cost TCH $700,000. The first advantage is the cost for ownership will be constant until the loan is paid off. With all the improvements that will be made to the building the increase in value will benefit the hospital, and not to the leasing company if that option was used. Buying a new facility will allow for the hospital to customize the building as needed and

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