CAPTIAL STRUCTURE OF HOSPITALS

 

Capital structure ratios have remained relatively constant over the past five years, with the exception of average age of plant which has been rising.While hospitals have not been borrowing to build new facilities, they have been investing in capital equipment, resulting in a 5% increase in net property, plant, and equipment.

 

Average Age of Plant:

 

Total accumulated depression on all property, plant and equipment divided by total current depreciation, expressed in years.A measure of the average accounting age of assets.Favorable values are below the median.

 

Median average age of plant has been increasing over the past five years, particularly for rural hospitals which face a more difficult capital marketódue to lower utilization and occupancy ratesóand are unable to upgrade facilities.Hospitals in the rural East North Central region have the highest average age of plant.

 

ALL HOSPITALS

1991

1990

1989

1988

1987

 

 

 

 

 

 

Total

 

 

 

 

 

25 to 99 beds

9.43

9.12

9.04

8.82

8.49

100 to 249 beds

7.73

7.46

7.27

7.06

6.85

250 to 399 beds

7.65

7.62

7.56

7.3

7.03

400 and over

7.37

7.27

7.2

7.17

7.07

Avg.

8.05

7.87

7.77

7.59

7.36

 

 

 

 

 

 

Urban

 

 

 

 

 

25 to 99 beds

8.08

7.63

7.58

7.42

7.3

100 to 249 beds

7.55

7.36

7.15

6.9

6.68

250 to 399 beds

7.64

7.66

7.49

7.3

7.04

400 and over

7.37

7.27

7.2

7.16

7.06

Avg.

7.66

7.48

7.36

7.2

7.02

 

 

 

 

 

 

Rural

 

 

 

 

 

25 to 99 beds

9.93

9.7

9.5

9.17

8.9

100 to 249 beds

8.26

7.8

7.59

7.53

7.31

250 to 399 beds

7.74

7.52

7.61

7.26

6.88

400 and over

7.61

7.59

7.49

7.5

7.35

Avg.

8.39

8.15

8.05

7.87

7.61