Tripping debt covenants
Courson, W.M.; Hahn, T.K.
Healthcare Financial Management Journal of the Healthcare Financial Management Association 63(7): 54-58
2009
ISSN/ISBN: 0735-0732 PMID: 19588812 Document Number: 630665
In the current economy, many hospitals are changing their debt structure or taking on new debt. Healthcare financial managers should avoid tripping their debt covenants by creating a risk budget that includes covenant considerations. Tactical management of the risk budget may be necessary and requires understanding how decisions and market influences affect both sides of the balance sheet.