Should C. W. Williams buy the site offered at a cost of $400,000? …show more content…
Williams should not buy that site because it would put a financial weight on the primary care facility. This huge amount of money would effect on the revenue cycle for many years. As stated by Michelle Marrs who is the CEO of C.W. Williams, “Buying another facility would be a stretch financially.” In this harsh situation, and with the declining in Medicaid reimbursement, the grant money was leveling rapidly off. The offered site was priced by $479,000 and also the remodeling cost is about $500,000. Additionally, according to tax reports, the building and the land are both together worth about $250,000. If we see the financial statement in Exhibits 16/11, 16/12, and 16/13 we can compare the financial statements through 1992-1996 and it would show the increase in debts due to the investments. To sum up, purchasing a building site for C.W. Williams would not be financially efficient at this specific