lOMoAR cPSD| 63316909
Service Line Development-AMT 2 Task 1
February 6, 2023
Trinity Hospital has support services, including imaging, lab, pharmacy, and physical and respiratory
therapy. Trinity's mission states "To provide quality healthcare for all those in need of assistance,".
Several subspecialities at Trinity maintain only marginal practice. The administration has made expansion
of specific services a priority.
A1a: Building Advantage
Hospitals face unique challenges when making decisions surrounding renovation, creation, and/or
expansion of facilities. Here, the discussion will begin with the advantages of building a brand new
orthopedic service line facility. An advantage to building a facility is the ability to customize the space,
and the ability to accommodate building improvements and changes as needed.
A few additional advantages to building a new facility is the freedom to choose arrangement of the
patient rooms, treatment rooms, radiographic service rooms and physical therapy spaces. These
significant advantages will allow the hospital to have complete control over the construction project, and
development of the orthopedic facility based upon current and future projected needs.
Regarding the value of real estate, hospital properties have the potential to increase property values of
neighboring communities. Additionally, the purchase and facilitation of the property by the hospital has
the potential to provide expansion of the hospital, which may potentially provide an expanded access of
medical care to the existing communities. The hospital would not have to purchase a new lot and the
cost of building an extension would run approximately $700,000, which is affordable for the facility.
A1b: Buying Advantage
Advantages of buying space for the new orthopedic service line include having an opportunity to declare
the property as an asset. The hospital might see benefits from tax write offs, interest rate deductions on
commercial mortgages, and depreciation of any equipment purchased.
Improvements, and costs connected to improvements can be used for tax deduction purposes. The
hospital could leverage their loan amounts for more competitive interest rates. In this way, overall
expenses would decrease.
The hospital might see an increase in profit through expansion, with remaining property used to
increase patient care capacity. Additionally, with holding this asset, the hospital could choose to sell
additional property at a profit.
A1c: Leasing Advantage
Service Line Development-AMT 2 Task 1
February 6, 2023
Trinity Hospital has support services, including imaging, lab, pharmacy, and physical and respiratory
therapy. Trinity's mission states "To provide quality healthcare for all those in need of assistance,".
Several subspecialities at Trinity maintain only marginal practice. The administration has made expansion
of specific services a priority.
A1a: Building Advantage
Hospitals face unique challenges when making decisions surrounding renovation, creation, and/or
expansion of facilities. Here, the discussion will begin with the advantages of building a brand new
orthopedic service line facility. An advantage to building a facility is the ability to customize the space,
and the ability to accommodate building improvements and changes as needed.
A few additional advantages to building a new facility is the freedom to choose arrangement of the
patient rooms, treatment rooms, radiographic service rooms and physical therapy spaces. These
significant advantages will allow the hospital to have complete control over the construction project, and
development of the orthopedic facility based upon current and future projected needs.
Regarding the value of real estate, hospital properties have the potential to increase property values of
neighboring communities. Additionally, the purchase and facilitation of the property by the hospital has
the potential to provide expansion of the hospital, which may potentially provide an expanded access of
medical care to the existing communities. The hospital would not have to purchase a new lot and the
cost of building an extension would run approximately $700,000, which is affordable for the facility.
A1b: Buying Advantage
Advantages of buying space for the new orthopedic service line include having an opportunity to declare
the property as an asset. The hospital might see benefits from tax write offs, interest rate deductions on
commercial mortgages, and depreciation of any equipment purchased.
Improvements, and costs connected to improvements can be used for tax deduction purposes. The
hospital could leverage their loan amounts for more competitive interest rates. In this way, overall
expenses would decrease.
The hospital might see an increase in profit through expansion, with remaining property used to
increase patient care capacity. Additionally, with holding this asset, the hospital could choose to sell
additional property at a profit.
A1c: Leasing Advantage
