Given the global economic and market trends concerning financial markets, nations have resulted in sourcing working capital from external vendors so s to finance their healthcare financial needs. Market changes disrupt hospital cash flows due to the increased cost of employment and integration, high demand for advanced hospital information systems, and more so, the urge to expand and modernized hospital facilities (Sussman & Jordah, 2012) . Therefore, hospital cash flow alone cannot support and sustain hospital high-level capital expenditure. For that reason, most capitals have opted to seek funding through equity financing and debt financing. However, more hospitals may choose to use equity funding over debt funding.
Equity financing involves giving a portion of the hospital's shares in exchange for the capital. The hospital board agrees on the percentage of share allocation, and therefore, the investor becomes a shareholder in the hospital. Such kind of funding comes with benefits in which there is no additional financial demand. There are no required annual or monthly payments needed from equity financing (Beauvais, 2017) . Therefore, the hospital is left with more money to invest and expand its operations. More so, the investors that are funding the hospital become part of the decision-makers. Therefore, they may come with great business experiences that could be advantageous to the hospital's running. Additionally , the company can use these investors' contacts to grow their networks and seek further funding. Such is because a recognized investor will catch other potential investors' attention by just investing in the facility.
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Despite the benefits, equity financing comes with its shortcomings. The investor who decides to give capital to the hospital in equity funds gains ownership of a portion of the hospital. Therefore, they become part of decision-makers (IOM, 2020) . Someone might have invested in the hospital but does not share in the business's values but only is there for investment returns. Such can cause the hospital to lose its focus or slow down the business decision—nevertheless, equity funding the best capital financing for any hospital due to its operation dynamics.
References
Beauvais, B. (Director). (2017). Debt & Equity Financing + Cost of Capital [Motion Picture].
IOM. (2020). FINANCIAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2019. council. INTERNATIONAL ORGANIZATION FOR MIGRATION.
Sussman, J. H., & Jordah, E. A. (2012). A GUIDE TO FINANCING STRATEGIES FOR HOSPITALS; With Special Consideration for Smaller Hospitals. Retrieved from http://www.hret.org/financial-strategies/index.shtml
