Finding funds under your nose with capital raising techniques

Abstract

As competition increases and patient utilization and reimbursement decline, financial managers are faced with exhausted debt capacity and increasing needs for capital. It appears to be an impossible situation. However, techniques that create underlying value can be used to raise needed capital without jeopardizing a hospital's debt capacity and credit rating. These techniques--off-balance sheet financing, sale/leaseback of undervalued assets, sale or lease of existing services, and debt restructuring--create additional sources of capital without threatening future debt capacity.