A healthcare organization can make two uses of debts. The first one is it can raise its capital through debt securities or invest in debt securities of other companies. In both the cases, the decision is to be taken carefully and considering the scenario of the market. Debt securities require payments at a fixed rate periodically. If the healthcare organization decides to raise funds through debts, it will be liable to pay interest at every period and if by any chance, the organization gets liquidated, the creditors (debt security holder) will be given preference and they must be paid prior to equity share holders.