Hospitals Face Financial Squeeze

We found an interesting article in The Wall Street Journal on May 1 detailing a study conducted by the restructuring firm, Alvarez & Marsal.

According to the study, 2,000 of the nearly 3,900 acute-care hospitals are not able to make a profit from treating patients. Furthermore, nearly 750 of the hospitals who do turn a profit stil do not have enough to reinvest in improvements and other essential expenditures.

Industry experts say competition from same-day surgery cents and outpatient clinics drive occupancy levels down. In addition Medicaid and Medicare reimbursements are decreasing couples with a high number of uninsured patients are part of the problem.

Click here to read the entire story: Hospital Face Financial Squeeze. (Note: Subscription required).

2 Responses to “Hospitals Face Financial Squeeze”

  1. Henry Says:

    it would seem this is an opportunity to Factor. Does PRN have any suggestions to seal the deal?

  2. PRN Funding Factoring Specialist Says:


    Although this situation would not be a good factoring deal for PRN Funding, you are right, it would be a good deal for a factor who specializes in third-party medical receivables.