Capital policy solutions must match need with payment. Roundtable on capital financing.

For a full day, seven individuals representing varied backgrounds and viewpoints within the healthcare industry discussed the issues confronting capital financing for healthcare institutions--capital requirements and investment, tax reform, capital costs under PPS, and alternative methods of financing. This discussion, sponsored by the Healthcare Financial Management Association and Smith Barney, Harris Upham & Co., Inc., provided a public forum for discussion of upcoming capital financing issues and concerns. The article presented here, taken from that discussion, focuses on the need for a capital policy that matches need with payment. It serves no public policy purpose to pay an institution more than it is going to use for capital improvement. If capital payment is for capital improvement, then do not underpay or overpay.