ArticleBMC health services research2025
A heuristic model for the cost of capital of healthcare facilities: estimates for five countries.
Article in BMC health services research, 2025. The graph could read no effect estimate from its abstract, so it casts no vote on the map. Not yet cited in PubMed.
What it found
Each row is one number read from the abstract, on the scale the paper reported it, with its interval. Left of the dashed line favours the treatment, right favours the comparator. Under each row is the sentence it came from. New to these charts? A ten-minute tutorial.
The abstract states no effect estimate the extractor could read, or names no intervention and outcome on the map, so this paper lights no cell and moves no belief. It is still indexed, cited and linked below.
The trial behind it
Trials whose registry record cites this paper, or whose number appears in the abstract. A trial that started after this paper was published is citing it as background, not reporting it.
Neither the registry nor the abstract names a trial number. If this is a trial report, that itself is worth knowing.
Who cites it
0 citing papers in PubMed.
No citing paper in PubMed yet.
Corrections and comments
PubMed lists nothing against this paper. Absence here is not a guarantee, only a check that was made.
Authors and funding
3 authors.
Funding
No grant is acknowledged in the PubMed record.
Abstract
backgroundThe healthcare industry has seen increasing demand, making it an attractive sector for long-term investment. Investors typically assess feasibility through an investment evaluation process that includes calculating the cost of capital and net present value. However, existing research has primarily focused on cost of capital methodologies for large corporations, often overlooking small and medium-sized enterprises. This study aimed to address that gap by proposing a simplified model to estimate the cost of capital for healthcare facilities, with particular emphasis on smaller organizations. The model incorporated key explanatory variables, including investment magnitude, organizational size, administrative expertise, and the geographical region of investment. To illustrate its applicability, we provided estimates for Chile, Germany, Spain, the United Kingdom, and the United States of America.
methodsWe reviewed existing research on techniques for estimating capital costs for healthcare facilities. Building on these foundations, we developed an approach that is straightforward, adaptable, and based on publicly accessible data. Our method segmented the cost of capital into two components: (i) risks associated with the country and sector in which the investment is made, and (ii) supplementary risks arising from the investment’s scale, age, or stage of development.
resultsWe provided a detailed explanation of the proposed method and presented numerical estimates of the cost of capital for healthcare facilities of various sizes across several countries. The final quantitative assessments of the cost of capital ranged from 14.6% and higher, depending on the specific attributes of the investments.
conclusionThis study introduced a novel, straightforward, and user-friendly method for estimating capital costs in the healthcare sector. The model accounted for various factors influencing investment risk, including investment size, the experience level of the management team, and the country of investment. In summary, the approach supports the estimation of the cost of capital for healthcare facility investments and can be used by policymakers and healthcare leaders to make informed decisions on new investments.
Indexed as
Identifiers
What OpenQuestion holds
Registered trials
Read under generation 80e0d062 · epoch 390. Bibliography from PubMed, PubMed Central and OpenAlex; grants from NIH RePORTER; trial links from ClinicalTrials.gov; estimates, votes and beliefs from the OpenQuestion graph.