More and more, hospitals are stopping or postponing "shovel-ready projects,” according to a new survey from the American Hospital Association. The survey showed that hospitals’ ability to obtain the necessary funds to upgrade their facilities or invest in new clinical and information technologies is severely restricted due to the “capital crunch” and the recession.
The vast majority of hospitals report that borrowing funds through tax-exempt bonds is difficult or impossible. In addition, loans from banks or other financial institutions are similarly difficult to obtain. Hospitals’ reserves also have taken a hit due to falling stock prices, net income is down, and philanthropic donations have slowed, leaving hospitals with less of their own funds to rely on to make needed improvements.
Nearly half of hospitals surveyed have postponed projects that were to begin within the next six months and many have stopped projects that were already in progress.
Read the report.
