Economic Downturn Squeezes Hospitals' Ability to Borrow Money

As a result of a bad U.S. economy, a new report notes that hospitals, which employ 5 million people nationwide, could be facing uncertain times as their financial health falters and their ability to borrow funds for improving facilities and updating technology is squeezed.



The report shows the credit crunch is increasing the costs of borrowing money, making it more difficult for hospitals to find the financing for facility and technology improvements. It indicates hospitals have delayed or will delay capital investments in the near future:

• 56 percent are holding off on renovations or plans to increase capacity or considering postponements


• 45 percent are delaying the purchase of clinical technology or equipment


• 39 percent are putting off investments in new information technology

Sun Capital HealthCare, Inc. (SCH) provides a debt-free funding solution for hospitals and healthcare providers that can help alleviate the financial stress associated with not having sufficient up-front cash to meet overhead and finance necessary improvements.

Healthcare executives can use the funds generated from SCH's Medical Accounts Receivable (MAR) Funding program to improve return on investments (ROI's) by financing deferred projects, such as renovations or the purchase of needed equipment, at today's costs and seeing the benefits of their investment sooner.

HOSPITAL CREDIT RATINGS CONTINUE TO SLIDE

A recent article in H&HN Magazine ,online, noted the continuing decline of hospital credit ratings due to the economic crisis. The author, Randy Edwards, cited several experts that were interviewed for the article as giving health care administrators the following advice:

• pay attention to day-to-day business as there are new revenue sources and savings to be found


• shore up physician relationships - through effective recruitment and retention strategies

A medical accounts receivable program from Sun Capital HealthCare, Inc. can be a financial solution to reimbursement delays while at the same time ensuring a healthier balance sheet that is more attractive to the credit markets. Because SUN's program is not a loan, the provider can utilize its receivables as a cash flow solution for generating working capital rather than as an obstacle to growth and proftability. Additionally, the flexibility in SUN's MAR funding program allows the provider to use the funds to follow the above advice.

With the healthcare marketplace becoming increasingly competitive, a provider's survival as well as growth depends on an effective financial strategy and using all the financial tools available.

Obama Urged to Overhaul Healthcare, Stat

In a letter to Obama, the Business Roundtable, the National Federation of Independent Businesses, AARP and the Service Employees International Union urge that a healthcare overhaul be a priority in the administration's first 100 days.

In their letter, the groups link healthcare reform with the nation's bleak economic conditions.

Obama made healthcare reform a central plank of his presidential campaign, pledging a sweeping effort to expand coverage and lower costs. But since his victory, he has not indicated how he plans to proceed with an overhaul that could cost hundreds of billions of dollars and spark an intense political battle.

In a national radio address Saturday, Obama made a general reference to healthcare reform, listing it with energy, education and tax relief as "key priorities."

Sun Capital HealthCare, Inc. Provides Funding Solutions for the Healthcare Industry

Sun Capital HealthCare, Inc. (SCH) will participate in the Healthcare and Capital (HCap) Conference as a funding solution provider for the healthcare industry from November 19-21, 2008 in Washington, DC.

HCap is designed specifically for C-suite healthcare leaders and financial executives. The forum provides attendees with avenues to discover how they can get maximum access to capital as well as fosters creative entrepreneurial thinking about healthcare.

SCH financial professionals will be on hand for one-on-one meetings with HCap attendees to discuss how SCH's Medical Accounts Receivable (MAR) Funding program can serve as a debt-free funding solution.

With MAR Funding, healthcare providers can count on immediate and predictable cash flow without having to worry about tying up other assets or increased interest rates.

Using the Computer to Manage the Elderly and Chronically Ill Health Problems

A recent review focused on ways to motivate the elderly and chronically ill to use computers in order to learn how to better manage health problems.

It focused on health IT systems where patients or consumers interact with the technology and receive patient-specific information in return. These include home monitoring systems with interactive disease management or self-management technology, educational or decision aid software tailored to the patient's needs, online patient support groups, tailored health reminder systems where interactions are linked with personal health records, and patient-physician e-mail systems.

The elderly were defined in the study as those with a mean age greater than 65 years; the chronically ill as those with conditions such as diabetes, asthma, heart failure, chronic obstructive pulmonary disease and mental illness; and the underserved as minorities, low-income populations and those living in medically underserved geographic regions.

The review was directed by lead investigator Holly Jimison, Ph.D., an associate professor of medical informatics and clinical epidemiology, OHSU School of Medicine.

What will motivate the elderly, the chronically ill and the medically underserved to use interactive information technology systems to actively help manage their own health problems?

The Presidential Election and Your Medical Reimbursements

Once you read this article, you will no doubt know the result of the Nov. 4th presidential election. However, the medical business is the medical business! Under either administration, attempting to lower the budget deficit will first involve reimbursement reductions. Once again the medical provider will bear a significant portion of the expense toward a lower federal debt.

Neither candidate has discussed reducing the size of governmental healthcare so healthcare will still be cumbersome at best...and....if government decides to "mess with" the existing system, one can be confident to anticipate more delays, and overall less efficiency. Is this year's election unique when considering healthcare? Not really!

We have now seen the credit market virtually disappear as shown in The Wall Street Journal article dated November 4th, 2008. Medical Accounts Receivable (MAR) Funding is truly the answer for increased cash flow and funding growth/expansion to your medical practice or business. Increasing your services or products, funded by your existing and future medical claims (A/R), can mitigate decreased reimbursements by eliminating the waiting time to receive payment, without the "help" of financial institutions currently in gridlock. It also allows the provider to build a new line of services or products previously unaffordable if not for MAR Funding. A medical provider of any kind, with a continual flow of Medical Accounts Receivable as well as an existing bucket of receivables awaiting payment, can literally use the payments due tomorrow, to fund new business opportunities today. This is a real, and highly effective solution. Think about it!

Will Technology Cure Health Care — Or Kill It?

Obama has said that technology will save health care. Information technology is quickly becoming a medical resource: Google recently launched an online medical records service that claims online searches is where consumers turn first for health information.

Computerization can eliminate as much as 30 percent of medical costs that are due to inefficiency, according to Dr. Dean Ornish, founder of the nonprofit Preventive Medicine Research Institute. And advanced diagnostics will encourage prevention and reduce costly reactive treatment. Thanks to technology, such diagnostics are now within the reach of consumers. As more people test themselves, doctors and insurers may face the additional burden of just-in-case surgery and a “previvor” mentality. So, will new technology cure health care, or kill it?