More than eight out of 10 hospital chief financial officers fear they will have greater difficulty funding capital projects over the next decade, and 63% expect to be more dependent on cash from operations for funding, according to the Healthcare Financial Management Association. But using operating cash for capital might not be viable for many hospitals with low profitability, minimal liquidity and a high debt burden, the HFMA said. The findings were based on a survey of CFOs at 460 hospitals and health systems nationwide and are contained in the fourth report of the HFMA's Financing the Future series, a yearlong project researched by the HFMA and PricewaterhouseCoopers and funded by GE Healthcare Financial Services. In other findings, more than one-third of government hospitals expect to rely more on local taxes to meet capital needs. while nearly 25% of all hospitals expect to increase bank loans. The report is available free to members or for purchase to nonmembers on the HFMA's Web site. -- by Mary Chris Jaklevic
Capital projects may draw more on operating cash
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