Hospital Operating "in the Black" Suffers From Lack of Cash Flow

According to a recent KPMG audit, Bert Fish Medical Center may have operated in the black in 2007, but lack of cash flow still put a squeeze on the hospital's bottom line.

While activity was up, resulting in almost a $3.4 million increase in revenues, according to Chief Financial Officer Al Allred, accounts receivable - the amount the hospital is owed- was also up.

This good-news, bad-news report received a mixed reaction from hospital board member Bill McGee, chairman of the finance committee. "I am pleased we are operating in the black, but I am not pleased we are not doing better than we are," he said.

McGee would like to see new revenue generators, such as adding a wound care center to the hospital. He also hopes to hire more new doctors who will build up their patient base in order to boost numbers.

An effective financial strategy to fund McGee's propositions is Medical Accounts Receivable (MAR) Funding. By selling their accounts receivables from third party payors to a credible funding source, Bert Fish Medical Center will have the immediate and debt-free working capital needed to expand their facility and to attract doctors to join their team by having the financial freedom to keep up with the competitive salary market.