Non-profit hospitals use debt financing primarily because they cannot issue stock to raise capital. They rely on tax-exempt bonds or loans to fund large expenses like equipment, facility expansions, and property acquisitions. Debt financing allows them to maintain financial reserves while preserving their tax-exempt status and fulfilling their mission-driven objectives (AHA, 2023). Investor-owned hospitals use both debt and equity financing, but they have the advantage of raising capital through stock issuance. Equity financing helps attract investors while debt financing allows them to leverage funds for expansion, acquisitions, and technology upgrades (Gray, 1986). These hospitals must balance debt levels to maintain profitability and shareholder value. Regardless of ownership, hospitals often use a combination of debt and equity financing to maintain financial flexibility. Debt financing provides immediate funding while equity financing reduces long-term financial strain. Using both methods helps hospitals manage financial risks while ensuring they have the capital needed to invest in patient care, infrastructure, and technology (Gray, 1986)