Financial reserve. Hospitals leery of credit lines, factoring receivables.
Opening lines of credit and factoring (selling) accounts receivable are two ways to generate operating cash that non-healthcare industries have long used successfully. A recent survey of hospital officials across the nation, however, showed these techniques are used infrequently in health care. Among the 281 hospitals responding: Only 45 percent use lines of credit; Less than 5 percent pursue accounts receivable factoring; and Only 12 percent plan to begin factoring receivables in the future. As hospitals look for ways to offset depleted cash reserves, these percentages may increase.
Edwards
D E
DE
University of Arkansas, Little Rock.
Hamilton
W C
WC
Hauser
R
R
D000067:Accounts Payable and Receivable; D001291:Attitude of Health Personnel; D002202:Capital Financing / Q000706:statistics & numerical data*; D003132:Commerce / Q000706:statistics & numerical data; D006740:Hospital Administrators / Q000706:statistics & numerical data*; D006742:Hospital Bed Capacity; D010350:Patient Credit and Collection / Q000706:statistics & numerical data*; D011795:Surveys and Questionnaires; D014481:United States