AMT 2 Task 1 Service Line Management

The Trinity Community Hospital is a facility that holds 150-bed, and currently the facility has put forth the effort to expand their services that are offered. However, the company has recently faced a dilemma in the new expansion idea, the new expansion must offer physical therapy center. Due to the amount of space the facility has this is a project that will require more option for a new look in order to continue with the projected look of the new facility. Trinity hospital must open up the options to thinking of the advantages and disadvantages of buying, building or leasing a property around the current area or to the current facility. Every option comes with their advantages and disadvantages when dealing with the financials, possible upcoming development, desired space, and compatible with current standing orthopedic services centers.
The option of building the Physical Therapy center should be examined first. Recently the CFO of Trinity Hospital sent an email stating that the construction cost would be $120 per square foot for the 5,000 square feet needed for the center. In total this amount is estimated to the cost of 600,000 in order to build on the property. This option has the advantage to be the sole owner of the property giving them all the rights to daily operations without anyone overseeing them and making sudden changes. The hospital would be totally responsible for everything versus leasing the property. One of the key disadvantages and risks is that the CFO explains that the facility has run out of space to extend on the site of the facility. This option may not be the best option but the risk and benefits must be considered in order to determine the best option to recommend.
The next option is for the hospital to buy and put the center adjunct to the hospital. The CFO has stated that the