Capital financing techniques for health care facilities: an historical overview

Realizing that a thorough discussion of capital financing techniques for health care facilities would fill several volumes, this article presents an overview of the techniques currently used in the industry. Included is an outline of the basic features, applications, and costs of the various techniques. Because financing techniques in current use evolved from earlier forms, the chronological format adds a measure of clarity and logic to the development of health care financing. The primary focus will be on private, voluntary hospitals since they comprise the majority of the health care financing volume. A particular technique's applicability to public facilities, nursing homes, retirement centers, for-profit facilities, and freestanding facilities is noted, however, when appropriate.