Case Study

Section 5 Case Study: General Practice Affiliates and Titus Lake Hospital: A Provider Leasing Proposal
(page 133), complete a case analysis by answering the five questions at the end of the case study. Your
response must not exceed four (4) pages (excluding title and reference pages), doubled spaced using #12
font, and APA format. Use headings for each section

1. In your opinion, is Titus Lake Hospital a good financial partner for General Practice Affiliates? You will
need to analyze the financial reports provided in order to determine the hospital’s financial stability.
2. What is the level of financial resources required to support the transition from one electronic medical
records system to another in General Practice Affiliates? You may assume that the practice’s current medical
records system is completely incompatible with the hospital’s, so records cannot be transferred from one
system to the other. You will need to consider the amount of investment required to convert to the new
system and transfer at least 750 patient records.
3. Given the existing capital structure of General Practice Affiliates, what is your recommendation for
financing the purchase of the new medical records system? You may assume that the practice has been able
to retain some investors and service its current debt.
4. If General Practice Affiliates decides to attract investors to finance a new medical records system, what
return on investment do you think would be reasonable? Consider the current economic environment as
relevant to this decision.
5. Discuss the risks inherent in the provider lease agreement with Titus Lake Hospital and recommend at
least three risk management strategies to the partners in General Practice Associates.