Hospitals’ Access To Capital Drops

BOSTON — The Healthcare Financial Management Assoc. (HFMA) recently released a report to members showing that the percentage of hospitals, nationally, classified as “having broad access to capital” dropped from 42{06cf2b9696b159f874511d23dbc893eb1ac83014175ed30550cfff22781411e5} to 36{06cf2b9696b159f874511d23dbc893eb1ac83014175ed30550cfff22781411e5} between 2001 and 2002.
The percentage of “limited-capital-access hospitals” nearly doubled during the same time, from 11{06cf2b9696b159f874511d23dbc893eb1ac83014175ed30550cfff22781411e5} to 19{06cf2b9696b159f874511d23dbc893eb1ac83014175ed30550cfff22781411e5}. The report, based on HFMA and PriceWaterhouse Coopers research, says the inability to borrow comes at a time when hospitals are facing rising demands and aging facilities.

The problem is particularly acute in Massachusetts, where hospitals have had to deal with six straight years of operating losses.