Trinity Community Hospital Case Study

1411 Words6 Pages
A1a: Building Advantages Trinity Community Hospital is 150-bed facility that is trying to expand their services offered. Unfortunately, the next expansion service of a physical therapy center to complement the growing orthopedic department will not fit into the current facility due to space constraints. Trinity hospital will look at the advantages and the disadvantages of either building, buying or leasing a new space on campus or adjacent to the current facility. Each options advantages and disadvantages are based on financial, space needs, potential future expansion, and compatibility with current standards. The first option for consideration is building the desired structure needed on campus of the hospital. Currently, the hospital can accommodate an additional medical office building of up to 60,000 ft.² with only 5000 ft.² needed for physical therapy center. The first benefit is financial. This…show more content…
These consist of financial, space needs, potential future expansion, and compatibility with current standards. The financial disadvantage is primarily comprised of the triple net lease requirement by the landlord. A triple net lease essentially means that the hospital is responsible for taxes, maintenance, insurance is in addition to the lease payments (Triple Net Lease, 2014). The hospital is responsible for all the financial burden with no return on investment at the end of the lease. The second detriment is space needs. Depending on how long the lease agreement is contracted, the space may no longer meet the needs of the hospital. This may also prevent future potential expansion opportunities by continuing to make payments on a building that is no longer needed. Finally, as the hospital does not own the building, it is possible they are unable to remodel the space to meet the current expected standards of Trinity Community

More about Trinity Community Hospital Case Study

Open Document