Capital crunch forces U.S. hospitals to delay IT upgrades

Capital crunch forces U.S. hospitals to delay IT upgrades

The “capital crunch” and the recession are severely restricting U.S. hospitals in obtaining funds to upgrade their facilities and invest in new clinical and information technologies, according to the American Hospital Association.
In a conference call with reporters, AHA President and CEO Richard Umbdenstock said hospitals rely on borrowed money, philanthropy, and reserves to fund capital projects, but many now find it difficult to obtain funds from these sources.
(Editor’s note: According to the AHA, the House Ways & Means and Energy & Commerce committees, as part of the American Recovery and Reinvestment Act, would invest $20 billion in infrastructure and Medicare and Medicaid incentives to encourage doctors and hospitals to use health IT.)
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