Leasing space for new orthopedic service line

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Reference no: EM133673095

Questions

1) Construction cost for 5,000-square-foot PT center-$120 per square foot 2) Price for building adjacent to hospital-$700,000 ($575,000 building; $125,000 lot) 3) Lease rate per square foot for 5000-square-foot MOB adjacent to hospital-$20 (including necessary renovations). This is a triple net lease which would make us responsible for taxes and repair costs. 4) Depreciable life of PT center if constructed or purchased-20 years Keep in mind as you work through the options that we are running out of space to expand on campus, so off-campus options for some services could be helpful. We also need to be mindful of maintaining an adequate capital reserve should we elect to implement all three program options in the strategic plan simultaneously.

What are the disadvantages of building, buying or leasing a space for a new orthopedic service line.

Reference no: EM133673095

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