From the optimism file: 71% of healthcare execs expect revenues to increase this year

Healthcare executives maintain a positive outlook for 2016, with 71 percent expecting their revenues to increase this year and 55 percent expecting to seek financing in the next 12 months, according to a survey released by financial firm CIT Group.

The findings were based off a Harris poll conducted among 164 healthcare executives. 

“The majority of the surveyed healthcare executives remain optimistic, expecting similar growth to last year in revenue, prices, volume and capital spending,” said William Douglass, Group Head and Managing Director, CIT Healthcare Finance.

“With a promising financial outlook, it is not surprising that nearly half of executives surveyed also believe that capital spending will increase in the coming year,” he added. “Moreover, the need for financing is expected to hold steady or increase.”

Some key statistics from the study include:

• Demand for financing grows: 55 percent believe that their company is likely to seek financing in the next year.
• M&A seen as on the rise: 53 percent of healthcare executives imagine that mergers and acquisitions will increase across the industry as 41 percent believe it will remain stable.
• Industry will rely on technology to move forward: 80 percent executives believe that patients should be using technology to monitor their healthcare needs, and 88 percent cite security as a clear concern that must be addressed.
• Costs continue to pose a challenge: 91 percent feel that consumers will be unable to afford any higher healthcare costs than the current standard.
• Some government involvement welcomed by executives: 78 percent of executives believe that the government should maintain at least some role in and authority over the healthcare industry.
• Alignment with industry standards on outcomes: 72 percent felt that their sector is on track with the rest of the industry on how to best measure outcomes.