According to a new Healthcare Financial Management Association (HFMA) study, over half of U.S. hospitals are facing financial struggles. Rural hospitals and those not affiliated with a health system--almost half of hospitals--are particularly at risk from competitors. Financial pitfalls come from many directions, including competition from doctor-owned facilities, lower government reimbursement rates, high debt and spending on necessary infrastructure and IT improvements. Some hospitals will thrive while others fail; this is determined by how much access to capital hospitals have. "Organizations that are relatively nimble and can seize emerging opportunities will continue to have fairly broad access to capital. Organizations at the other end of the spectrum are going to struggle. And organizations in the middle, with moderate capital access, will need to identify their areas of distinctive competence and focus their capital spending on these areas," notes Richard L. Clarke, president and CEO of HFMA. Seizing opportunities to cut programs that aren't working and offering better services are necessary for a hospital's survival.
For more on the HFMA study:
- check out this press release