Hospital Loan Assistance Programs

Actions Needed To Reduce Anticipated Defaults Gao ID: HRD-79-64 June 27, 1979

Two major loan assistance programs, the Department of Health, Education, and Welfare (HEW) Hill-Burton program and the Department of Housing and Urban Development (HUD) Section 242 Mortgage Insurance program, assist hospitals in constructing new or modernizing existing facilities.

Many hospitals with loans guaranteed under the Hill-Burton program or insured under the section 242 insurance program have been experiencing serious financial problems, but neither HEW nor HUD knew the extent or severity of the problem. In response to a GAO questionnaire sent to 380 hospitals participating in these programs, 44 hospitals with loans of about $326 million reported their financial condition as poor or very poor. The financial problems at these hospitals could lead to defaults, closures of modern facilities, and substantial losses to the federal government.


Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: Team: Phone:

The Justia Government Accountability Office site republishes public reports retrieved from the U.S. GAO These reports should not be considered official, and do not necessarily reflect the views of Justia.