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  • Title: Financial reserve. Hospitals leery of credit lines, factoring receivables.
    Author: Edwards DE, Hamilton WC, Hauser R.
    Journal: Healthc Financ Manage; 1991 Oct; 45(10):82, 84, 86-8. PubMed ID: 10145513.
    Abstract:
    Opening lines of credit and factoring (selling) accounts receivable are two ways to generate operating cash that non-healthcare industries have long used successfully. A recent survey of hospital officials across the nation, however, showed these techniques are used infrequently in health care. Among the 281 hospitals responding: Only 45 percent use lines of credit; Less than 5 percent pursue accounts receivable factoring; and Only 12 percent plan to begin factoring receivables in the future. As hospitals look for ways to offset depleted cash reserves, these percentages may increase.
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