What are the nonfinancial drivers for adding an LTAC facility to the Va. Health System? What are potential reasons the board may not approve the project from a nonfinancial standpoint?

Provide in each slide detailed speakers notes—a minimum of 100 words in length. Notes must draw from, and cite, relevant reference materials.
July 12, 2022
Identify the changes in healthcare delivery that have resulted from the industry forces.
July 12, 2022
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What are the nonfinancial drivers for adding an LTAC facility to the Va. Health System? What are potential reasons the board may not approve the project from a nonfinancial standpoint?

What are the nonfinancial drivers for adding an LTAC facility to the Va. Health System? What are potential reasons the board may not approve the project from a nonfinancial standpoint?
What are the differences between nonprofit institutions and for-profit institutions? For example, how would a for-profit hospital approach the LTAC decision?
What is the average cost of capital of the for-profit hospitals provided in case Exhibit 3? Would this serve as a reasonable discount rate to analyze a set of for-profit LTAC facility cash flows? Should Fitzgerald use this number to discount the U.Va. LTAC facility’s cash flows?
Using the information in the case and the memo from Karen Mulroney in case Exhibit 1, complete the cash flow projections in the spreadsheet provided. What do you get for the NPV and IRR of those cash flows?
What are the main drivers for NPV and IRR? Show the impact on NPV and IRR by changing a couple of these drivers to a “downside scenario” value.
Based on your financial analysis, should Fitzgerald propose the LTAC project in the board meeting?

 
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