Swift Health Plan Executive Summary

611 Words3 Pages
Introduction Capstone Consulting Group has been approached by the Medical Associates to perform an executive summary regarding a land option and the changes in the Swift Health Plan. Medical Associates needs a recommendation concerning a 225-acre land on whether to sell only 25 acres closest to an anticipated highway or if they should sell all 225-acres. Swift Health Plan is announcing changes and Medical Associates need a recommendation on how to get in the best position for their developing managed care markets. Land Option In 1980, Medical Associates acquired a 30- year option for the 225-acre of land by the facility that established a purchase price not to exceed ‘the average prevailing rate plus 10 percent for undeveloped farm land in Hillsboro County’ (Seidel and Lewis 2014). The average prevailing rate is currently $2,800 per acre and is expected to increase. This land…show more content…
The prevailing rate is only expected to increase, so with each additional year more money could be made from these sales. Even if the prevailing rate remains unchanged within five years, Medical Associates could make $1,365,255 from holding onto the 25 acres and then the separate 200 acres. The thing about waiting for five years is that Medical Associates will have to pay taxes on 200 acres of undeveloped land that would be a total of $121,550.63. Recommendation Holding onto the land for five years then selling it will generate $200,000 less compared to selling the land to the real estate investor for $1,500,00 as soon as it is acquired. This $1,500,000 can help pay for any debts Medical Associates has or possibly start planning for upgrading their current facilities. Therefore, the recommendation is to sell the land to the real estate investor and receive $1,500,00 without waiting for five

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