Thursday, August 4, 2011
More Good News for Hospitals......Not Really
Hospitals continue to be squeezed from every direction. Operating cash flow will continue to contract as payors move toward value based care; there will be significant limitations on fundraising due to the economy and competition; investment returns will remain volatile; the cost of capital will continue to rise; there will be significant pressures on smaller hospitals and hospitals located in vulnerable markets (rural and inner city); the significance of quality and size will only increase; consolidations of hospitals and providers will continue; IT requirements will continue to grow; pension pressures will continue for some; tax exempt status questions will intensify and health care reform uncertainties will continue to linger. Wow, not great news, but it drives the point that as leaders we have to embrace change and prepare our organizations of a very different future.