Paper Example on Rise in Interest Rates: Challenges for Healthcare Organisations

Paper Type:  Questions & Answers
Pages:  3
Wordcount:  642 Words
Date:  2023-02-12

Bruton, 2019 identifies various problems that may affect healthcare progress. These problems include the possible rise in interest rates. The author identifies this problem because the hospitals have been enjoying low-interest rates; however, if any trend or increase in these rates, the hospitals will experience financial problems. The author suggests that healthcare organizations should be prepared for it. He affirms that a change in economic policies such as trends that occur in interest rates is a problem; federal reserve contributes paly a role in this trend, which makes the future operations unclear. The author raises this fluctuation in interest rate as a point of concern because it makes it difficult to predict future borrowing and stability. Also, he identifies over-reliance on external credits by the hospitals is a significant challenge; this is because the banks may experience a change in interest rates, which may influence the number of support hospitals to get from them. He explores these problems to help in explaining the possible consequences of change interests and how it affects the hospital and market situations.

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2. What Information, Data, Or Evidence Does the Author Presents to Support the Purpose of the Article

Bruton, 2019 provides credible evidence to support the purpose of the article. He uses quantitative research to collects and analyzes data regarding trends in interest rates as well as the consequences of this charge. He provides dates and percentages to evaluate the trends. The author provides values in numbers and percentages to indicate trends, and the tables are used to show the relationship of the trends in the interest rates, and the performance in the hospitals provides evidence by comparing data from the two decades: 1998-2008 and 2009-2018. In the first decade, the interest rates were lower as compared to the period of 2009-2018, which contributed to an average of $25.1 billion per year and $30.46 billion per year, respectively.

3. What Key Conclusions Is the Author Coming To? Are Those Conclusions Justified?

Bruton, 2019 concludes that in 1998-2008, there was a high rate of interest as compared to today's interest rates; however, this rate is likely to revert in the near future. The author justifies this information from the lessons learned from 1998-2008 trends. He also concludes that the removal of advance refunding may influence the percentage of the overall market, the lower the volumes of refunding prides a clue on how this may impact the options of refunding. The author provides evidence from the periods 2009-2108 and 1998-2008 to justify this conclusion. The rates in the 1900s and 2000s were relatively low and stable because of the lo incentives to refund as well as low rates interest which neutralized the impacts of elimination of advance refunding. Furthermore, the author concludes that the hospitals must find alternative sources of funds rather than relying entirely on borrowing from the banks as a result of low-interest rates that they are provided with because the policy is likely to change or end.

4. What Are the Implications of The Author's Reasoning for The Field of Health Administration?

Bruton, 2019 provides a critical analysis of interests, rate, advanced refunding, credit transfer, and derivative instruments. This analysis helps to identify the problems that hospitals may experience as a result of trends in these elements. His understanding suggests that hospitals must be prepared for the possible end of low levels of interest because of the economic policies likely to be changed. From the evidence, it clears any trends to influence the availability of funds for the support that hospitals receive from the banks. The author discourages some of the assumptions that the hospitals make because it is the evidence that shows that it is uncertain to predict the future based on the trends that have experience in previous years.

References

Bruton, P.W (2019). Financing In The 2020s: Look for Higher Interest Rates https://www.hfma.org/topics/hfm/2019/september/financing-in-the-2020s-look-for-higher-interest-rates.html

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Paper Example on Rise in Interest Rates: Challenges for Healthcare Organisations. (2023, Feb 12). Retrieved from https://proessays.net/essays/paper-example-on-rise-in-interest-rates-challenges-for-healthcare-organisations

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