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Most hospitals not putting their money where their mouths are

Physician Practice Advisor, January 7, 2004

Forty percent of hospitals don't invest enough capital to stay ahead of asset depreciation, according to the Healthcare Financial Management Association's (HFMA) Financing the Future series.

The report indicates that between 1997 and 2001, spending on capital improvements on hospital assets increased from $23 billion to just $23.7 billion, virtually flat growth given inflation and increased patient demand for services, HFMA says. In the same period, the demand for inpatient services grew 7.7%, and the demand for outpatient services grew 19.6%.

The HFMA report indicated that hospitals in Florida, Hawaii, New Jersey, New Mexico and North Dakota have the most difficulty spending enough to beat depreciation, while hospitals in Idaho, Iowa, Minnesota, Oregon and South Dakota have the least problem.

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