American Hospital Association Survey Reveals Limited Access to Capital for Hospitals

A new American Hospital Association survey of 639 non-federal hospitals found that nine of out 10 hospitals are finding it more difficult to borrow money or attract charitable donations in this economic downturn.

Advertisement

The AHA survey, “The Capital Crisis: Survey of Impact on Hospitals,” was faxed in Dec. 2008 to all U.S. non-federal hospitals and the results tallied through Jan. 6.

Forty-five percent of the hospitals responding postponed projects slated to begin within six months, while 13 percent stopped capital projects already in progress.

Nearly four-fifths, or 82 percent, said they postponed construction projects, 65 percent put clinical technology projects on hold and 62 percent delayed information technology projects.

Of the hospitals that postponed projects, 83 percent attributed their decisions to the current economic uncertainty; 58 percent to a decline in operating performance; 59 percent to declines in capital reserves; and 53 percent to the credit crunch. More than one-quarter blamed high interest rates. Half of the hospitals postponing plans said the projects exceeded $10 million.

View the AHA report on hospital access to capital (pdf).

At the Becker's 23rd Annual Spine, Orthopedic and Pain Management-Driven ASC + The Future of Spine Conference, taking place June 11-13 in Chicago, spine surgeons, orthopedic leaders and ASC executives will come together to explore minimally invasive techniques, ASC growth strategies and innovations shaping the future of outpatient spine care. Apply for complimentary registration now.

Advertisement

Next Up in Uncategorized

Advertisement

Comments are closed.