Hospital capital formation in the 1980s: is there a crisis?
Access to capital will be a serious problem for a subset of our nation's hospitals in the 1980s. Without adequate capital to modernize or maintain life-safety codes, certain facilities may have no other choice than to close their doors. The consequences of closure are far-reaching and long-lasting. The hospitals that exit from the market may be forced out as a result of their location or payor mix, and not as a consequence of their inefficiency. Allowing capital formation in the hospital industry to be determined by the market criteria of bottom-line performance may lead to a serious contraction of the field, to increased financial hardships for the hospitals that remain, to reduced service provision, and to plant deterioration.
D002201:Capital Expenditures / Q000639:trends; D002202:Capital Financing / Q000639:trends*; D005161:Facility Regulation and Control; D005376:Financial Management / Q000639:trends*; D005377:Financial Management, Hospital / Q000639:trends*; D006271:Health Facility Closure; D007449:Investments / Q000639:trends; D014481:United States