New Law to Help Warn of Hospital Financial Crises

A new law enacted in New Jersey will require that an early-warning system is in place to help spot financially troubled hospitals before it's too late.

This year alone, four hospitals in New Jersey have closed due to financial woes. A fifth hospital will close its doors on Wednesday.

The new law will give the NJ Department of Health and Senior Services the authority and access to information necessary to monitor hospital finances. The department will then be able to identify financially troubled hospitals long before a crisis occurs.

Hospitals across the country facing similar financial crunches should strongly consider adding Medical Accounts Receivable (MAR) Funding to their financial portfolio. MAR Funding provides an immediate infusion of cash which can be used especially when a hospital or healthcare provider is under fiscal stress.