The board of directors of your for-profit hospital has been approached by a nonprofit hospital to consider a joint venture to take over their business resulting in a larger for-profit medical center status. You have been asked to construct a financial risk analysis for this conversion. Using course materials, including your text and the Internet, and principles of financial risk analysis, evaluate the considerations that a nonprofit hospital has in considering the conversion to a for-profit hospital.

Consider the following options in support of your decision:

Projected profit and loss statements

Retention of estimates

Selected cost of capital

Other spreadsheets and calculations you feel are needed to support your decision