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Article: Interest rate swaps: financial tool of the '90s. (includes related article)
- Article from:
- Healthcare Financial Management
- Article date:
- November 1, 1993
- Author:
CopyrightCOPYRIGHT 1993 Healthcare Financial Management Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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CAPITAL FORMATION AND MANAGEMENT The implementation of prospective payment for capital costs makes it more necessary than ever for healthcare financial managers to be able to creatively balance capital costs with risk. A new financial management tool -- the interest rate swap (a contractual agreement in which one party with a fixed interest rate payment liability and another party with a variable interest payment liability agree to trade those obligations)--is proving to be a solution for a growing number of hospital managers. This article describes the uses of interest rate swaps and discusses the variables to be considered when evaluating whether the benefits of an ...