3 Statistics on Hospital Capital Spending and Access to Available Capital

Here is a round-up of statistics on capital spending by hospitals and access to available capital, according to the AHA.

1. The following statistics represent the percentage of hospitals reporting decreased access to various types of capital, as of Dec. 2008:

  • Tax-exempt bonds — 12 percent of hospitals reported no access; 45 percent reported significantly more difficulty accessing these bonds; 31 percent reported somewhat more difficulty.
  • Banks/financial service companies — 3 percent of hospitals reported no access; 30 percent reported significantly more difficulty accessing; 44 percent reported somewhat more difficulty.
  • Philanthropy —1 percent of hospitals reported no access; 41 percent reported significantly more difficulty accessing; 49 percent somewhat more difficulty
  • Taxable bonds — 22 percent of hospitals reported no access; 34 percent reported significantly more difficulty accessing; 26 percent reported somewhat more difficulty
  • Equity/venture capital —18 percent of hospitals reported no access; 32 percent reported significantly more difficulty accessing; 34 percent somewhat more difficulty

2. The following statistics represent the percentage of hospitals reporting changes in access to capital from Dec. 2008-Mar. 2009:

  • 51 percent of hospitals reported about the same access to capital.
  • 45 percent of hospitals reported worsening access to capital.
  • 3 percent of hospitals reported seeing improvement.

3. In response to the recent economic downturn, hospitals reported reducing capital spending in the following ways:

  • 77 percent of hospitals reported overall reduced capital spending.
  • 54 percent reported deciding not to move forward with planned projects not yet started.
  • 46 percent of hospitals reported scaling back projects planned or already in progress.
  • 14 percent of hospitals reported stopping projects that were already in process.
Source: AHA's The Economic Crisis: The Toll on the Patients and Communities Hospitals Serve, April 2009.

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