case studies
efficiency optimization

Catalan public hospitals enjoy healthier cash flows

Efficient credit program benefits both public hospitals and their suppliers

The challenge

The Spanish healthcare system is decentralized and run on a regional basis. Catalunya runs 10 public hospitals serving 7.5 million people in and around Barcelona.

Public hospitals receive payment for their services from the regional healthcare system.

Delays could sometimes occur in these payments being made, causing problems for hospitals when paying their suppliers.

The solution

Citi worked with the Catalan regional healthcare authorities to devise an efficient credit program that would benefit both the public hospitals and their suppliers.

A non-recourse buyer's credit program was set up, ensuring hospitals received full and timely payment for their services, while enabling suppliers to accelerate their cash inflow and improve their balance sheets.