Survey: Financial stability still a concern for hospitals
Novation has released a nationwide survey of materials management executives from VHA Inc. and University HealthSystem Consortium (UHC) member hospitals.
The National Economic Impact Survey confirms that hospitals continue to be concerned about their financial health due to the current economic environment and increasing industry demands, according to the Irving, Texas-based healthcare supply contracting company.
Respondents indicate that the top concerns their facilities face in today’s economic climate are reimbursement cuts, impact of healthcare reform and reduced operating margins.
Key findings include:
The National Economic Impact Survey confirms that hospitals continue to be concerned about their financial health due to the current economic environment and increasing industry demands, according to the Irving, Texas-based healthcare supply contracting company.
Respondents indicate that the top concerns their facilities face in today’s economic climate are reimbursement cuts, impact of healthcare reform and reduced operating margins.
Key findings include:
- When asked about their level of financial recovery following the economic downturn, only 20 percent of respondents indicated that they have experienced significant financial improvement. The highest percentage of respondents, at 48 percent, indicated their financial situation has worsened, while the rest indicated they have seen no change.
- 65 percent of respondents have seen an increase in the cost of care related to meeting new patient safety standards and new environmental standards.
- Because of the challenging economic environment, 94 percent of respondents foresee either a decrease in staffing or no change at all. Six percent predicted an increase in staffing. Of that 6 percent, all expect to see a staff increase in nursing.
- The opinions regarding supply spending are less unified. Thirty-three percent of the respondents foresaw an increase in supply spending at their facilities over the next year, while 45 percent expected a decrease and the remaining respondents did not anticipate any change.
- Anticipated growth in clinical product spend is varied. For example, 43 percent of respondents predicted an increase in surgical procedures and 51 percent predicted an increase in spending on orthopedic products, but 27 percent and 36 percent anticipated an increase in spending on spinal products and cardiology products, respectively.
- Fifty-four percent expected their purchasing of new technology to increase over the next year, and 48 percent anticipated an increase in pharmacy spending.
- In light of these financial demands, respondents are focusing their efforts to reduce costs in specific areas: Eighty-six percent of respondents are focusing on standardization, 79 percent on process improvement, 60 percent are looking to utilization and 72 percent indicate they are reducing costs through their commitment to their GPO.