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Article: Selling accounts receivable to fund working capital. (hospitals)
- Article from:
- Healthcare Financial Management
- Article date:
- May 1, 1993
- Author:
CopyrightCOPYRIGHT 1993 Healthcare Financial Management Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The sale of accounts receivable by hospitals and other healthcare providers--and the securing of those receivables--has been the subject of considerable recent discussion. New developments and revised analyses of the financial and legal aspects of the sale of receivables make a continuing review of this financial management tool advisable.
The working capital needs of hospitals often can be significant, and those needs have been increasing in recent years. If the expected healthcare reform proposals of the Clinton administration are enacted, there will be additional burdens placed on hospital working capital.
Lines of credit are used by almost half of the ...