Discussion Questions
1. What are some of the key factors that healthcare organizations might use to identify a foreign country in which to set up new operations? Consider the question both from a financial perspective and from a mission perspective. What types of financial risks must they assess, and how might they go about managing or mitigating those risks to achieve their organization’s healthcare mission?
2. What arc some of the financial pros and cons of the different market entry methods? Does a trade-off exist between the entry strategy and the ability to achieve the organization’s desired mission-related healthcare outcomes?
3. What would be some of the main reasons that healthcare organizations might choose to seek new investment capital domestically and then move the money abroad? What would be some of the main reasons companies might choose to seek new investment capital within the foreign country where they seek to expand operations?
4. In what ways might you treat cash inflows and outflows differently when assessing a new capital project idea that requires investment in a foreign country, as opposed to a purely domestic investment?
5. How does a healthcare organization balance the long-term interests of entering new markets with the need to ensure the short-term financial viability of those initiatives? Should foreign initiatives be evaluated in isolation (i.e., each on its own merit, like an individual stock) or as part of a collection of projects (i.e., as a component of a larger portfolio)?
