Question

What type of financing has been the largest source of capital for the hospital industry for the last 30 years, although this type is primarily available to nonprofit facilities?

A. Government Grants
B. Venture Capital
C. Equity Financing
D. Tax-Exempt Bonds

Answer 1

Tax-Exempt Bonds have been the largest source of capital for the hospital industry for the last 30 years, primarily available to nonprofit facilities.

Step-by-step explanation:

The type of financing that has been the largest source of capital for the hospital industry for the last 30 years, primarily available to nonprofit facilities, is Tax-Exempt Bonds.

A bond is a financial contract where a borrower agrees to repay the borrowed amount along with an interest rate over a period of time in the future. Tax-exempt bonds are issued by various levels of government. In the case of the hospital industry, tax-exempt bonds are commonly used to finance the construction or expansion of nonprofit hospitals.

For example, a city may issue a municipal bond to finance the construction of a new hospital. Investors who buy these bonds lend money to the hospital, and in return, the investors receive interest payments from the hospital at a tax-exempt rate. This type of financing allows nonprofit facilities to access significant capital for their operations and expansions.