CoolD. My understanding is that banks are not in the business of tranching 10-15 million at a time to hospitals so that they can run smoothly.
If this was the case we would not see hospitals shutting their doors in such record numbers.
Banks are set up as lenders to businesses with hard assets not to fund large receivables that are subject to continually fluctuating levels of due diligence.
Unless you can convince me otherwise, fundng hospital receivables will become more and more crucial as hospitals seem to be going broke faster than we can count and specialty financing like this becomes even more specialized and necessary.
I think what you are for sure overlooking is that banks want assets. They are not interested in receivables. I've heard of hospitals mortgaging equipment like body scanners and cat scan devices to raise cash but there is no way a bank will advance cash on assets like hospital recevables. That's why we have companies specializing in these assets.