A. Payment Provisions
The city hospital must pursue this program since it enables them to make a single monthly payment that is distributed to their creditors. This erases the necessity to perform single payments to each and every creditor of the city hospital. Most of the creditors of the city hospital who are involved in this program will enable the city hospital to decrease its monthly payment and, after the hospital has included a payment history, will even remove interest and late charges. Therefore, in this process, more of the city hospital’s payment goes to reducing its debt, enabling the city hospital to move out of its debt easier.
B. Payment Schedule / Provisions
In this type of debt management program, the city hospital management has the prerogative to choose the payment date that’s best for them. The hospital’s management has the freedom to select any day from the 1st to the 28th of every month.
C. Security
This program honors the Fair Debt Collection Practices Act (FDCPA). This is a federal law that protects the city hospital from unwarranted threats that can be possibly done by their creditors and prevents creditors from producing fallacious statements against the city hospital.
D. Terms of Financing / Fees
This program is entitled to provide turnkey financing options as part of the total solution for the city hospital to recover from its financial handicap. This program’s main objective is to guarantee the city hospital of excellent financial structuring meant to answer the financial handicap of the city hospital, while at the same time remaining on the track of the latest hospital technologies and innovations. The terms of financing will also help the city hospital to maximize its limited budget yet still have the space to upgrade its technology.
LONG-TERM DEBT ALTERNATIVE
A. Debt Management Planning
A Debt Management Plan would serve as the link between the established standards and practices in then city hospital. It would be able to articulate, organize, and most importantly integrate the content and processes of the city hospital policies with integration of appropriate technologies. It would facilitate multiple levels of city hospital policies and decision making.
In general, the debt management planning is an ongoing process that would translate the financial needs of the city hospital into concrete actions. It allows the city hospital to take advantage of the latest innovations in debt management while at the same time minimizing the negative impacts of unexpected challenges. Debt Management Planning provides a clear pathway for the implementation of the above mentioned program which could result into a more efficient expenditure of the city hospital’s resources and an improvement in their financial performance.
The Debt management plan should reflect the policy and financial situation of the city hospital. However, the debt management plan cannot guarantee the needed changes. The debt management plan must ensure that the processes of debt management plan development, implementation, and evaluation are included as the integral components of the implementation of the necessary program. A well-designed debt management plan would be a dynamic tool that will serve as a guide for the city hospital’s innovations in debt management. This debt management plan would also represent opportunities for dialogue and professional development that enhance city hospital decision making in terms of financial issues.
The Debt Management Planning for the City Hospital should:
- Be an organized and continuous process, utilizing a simple yet direct planning model, and resulting into a document which would improve how the program are used for the city hospital’s debt management, assessment, and communications.
- Take into consideration the conventional mortgage, taxable bonds, tax-exempt bonds and FHA-insured mortgage.
- Be broad but realistic enough in terms of its scope. The debt management plan must also include economical and technically feasible solutions.
- Involve all the stakeholders—including the management, employees, staff members, clients, and experts–with experience in debt management.
- Identify the financial strengths and weaknesses of the city hospital and how each will impact the implementation of the program.
- Make a formalization of the city hospital’s procedures and methods for making debt management decisions, which should include also the setting of priorities and the evaluation, upgrading, and uses of finances and resources.
Credit:ivythesis.typepad.com
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