Financial Feasibility

Financial Feasibility. The Applicant shall demonstrate that the project is financially feasible. The Department may consider capital costs, financing arrangements, operating projections, revenue projections, utilization projections, debt obligations, financial resources, and economic conditions. The proposed charges shall be comparable to those established by other facilities for similar services within the service area or the state, and the Applicant shall document how proposed charges were calculated. Projected utilization levels shall be reasonably consistent with those experienced by similar facilities in the service area or the state and shall be consistent with the need level of the service area. If the capital expenditure of the proposed project is Two Million Dollars ($2,000,000.00) or more, the Applicant shall submit a financial feasibility study prepared by an accountant, CPA, or the facility’s financial officer. The study shall include the financial analyst’s opinion of the ability of the facility to undertake the obligation and the probable effect of the expenditure on present and future operating costs, and must be signed by the preparer.