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Funds Difficult to Obtain – AHA Report

By Staff Reporters

According to a survey from the American Hospital Association [AHA], the “capital crunch” and the recession are severely restricting US hospitals in obtaining funds to upgrade their facilities or invest in new clinical and health information technologies [HIT].

Bond Financing

The vast majority of hospitals surveyed in the report said that borrowing funds through tax-exempt bonds – the main source of borrowing for most hospitals – is difficult or impossible. Loans from banks or other financial institutions are similarly difficult to obtain [www.HealthcareFinancials.com]

Survey Results

According to the survey, the planned hospital projects now put on hold would have responded to a variety of healthcare needs:

• 43 percent of hospitals planned to expand and improve their emergency or urgent care departments.
• 65 percent intended that their projects increase their ability to provide inpatient medical and surgical care.
• 13 percent of hospitals reported they postponed projects related to inpatient behavioral health.

Moreover, the vast majority of hospitals that have postponed projects have delayed updating their facilities, while more than six out of 10 hospitals have put clinical and information technology projects on hold:

• More than 8 out of 10 hospitals said they have delayed projects to update or replace aging clinical equipment or use IT to automate clinical processes.
• More than six out of 10 hospitals reported that facility upgrades and clinical and information technology projects would have increased patient care efficiency and improved quality of care.
• Nearly 60 percent of hospitals said the IT projects that have been put on hold would have improved care coordination.
• About half of all hospitals are trying to meet growing demand for existing services through either facilities projects or purchases of clinical equipment.

Assessment

The AHA survey, “Report on the Capital Crisis: Impact on Hospitals,” provided data from 639 hospitals collected from late December 2008 to January 6, 2009.

Conclusion

And so, your thoughts and comments on this Medical Executive-Post are appreciated. How is your hospital or healthcare entity faring in the current recession and have you seen the above described capital financing crunch? 

Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com  or Bio: www.stpub.com/pubs/authors/MARCINKO.htm

Our Other Print Books and Related Information Sources:

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Medical Risk Management: http://www.jbpub.com/catalog/9780763733421

Healthcare Organizations: www.HealthcareFinancials.com

Health Administration Terms: www.HealthDictionarySeries.com

Physician Advisors: www.CertifiedMedicalPlanner.com

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Filed under: Accounting, Alerts Sign-Up, Breaking News, Health Economics, Monthly Reports | Tagged: AHA, American Hospital Association, bond financing, debt financing, HIT, hospitals, IT |