Non-Profit Hospital Tip: Create a Building Life Study

Non-profit hospitals can use a building life study to justify and quantify new construction or improvements to existing properties, according to a report by Principle Valuation.

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The building life studies should include a detailed analysis of individual building components according to the actual remaining life. The studies can extend the life of assets and reduce annual depreciation, which can benefit the property owner by “extending the permitted amortization period for bond financing and ultimately increasing cash flow,” according to the report.

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