Hospital Clínica Bíblica: Financial strategy for sustainable growth

This teaching case was developed to illustrate the application of financial concepts to the hospital industry. In particular, this teaching case allows the reader to analyze the sustainability of HCB's growth rate and to evaluate three investment proposals that require a recommendation to the Board of Directors. The case also illustrates how the hospital reduced its working capital through outsourcing and inventory on consignment. The case introduces financial benchmarks of other hospitals in Latin America and allows for a thorough discussion of the implications of a self-sustainable growth model. The case can be used to teach the Dupont Financial Formula, financial ratios, growth potential, working capital management, and inventory management.