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 per bed.

Total accumulated depreciation 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 captial market – due to lower utilization and occupancy rates—and are unable to upgrade facilities. Hospitals in the rural East North Carolina region have the highest average age of plant.