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.
University of Arkansas, Little Rock.
D E
DE
Edwards
W C
WC
Hamilton
R
R
Hauser
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