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. Amon...

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Bibliographic Details
Published in:Healthcare financial management 1991-10, Vol.45 (10), p.82, 84, 86-84
Main Authors: Edwards, D E, Hamilton, W C, Hauser, R
Format: Article
Language:English
Subjects:
Accounts Payable and Receivable
Accounts receivable
Attitude of Health Personnel
Capital Financing - statistics & numerical data
Cash flow
Commerce - statistics & numerical data
Credit management
Factoring
Factoring (Finance)
Finance
Financial management
Health administration
Hospital Administrators - statistics & numerical data
Hospital Bed Capacity
Hospitals
Lines of credit
Management
Methods
Patient Credit and Collection - statistics & numerical data
Polls & surveys
Reserves
Statistical data
Surveys and Questionnaires
United States
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Summary: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.
ISSN:0735-0732