Healthcare executives are generally optimistic about the current state of their businesses, although they have ongoing concerns about the ever-increasing cost of delivering care, according to a survey conducted by CIT Healthcare Finance.
Seventy-one percent of those surveyed expect revenue growth in their businesses this year--with 41 percent saying it will exceed a 5 percent year-over-year increase. And 67 percent forecast volume growth as well, with 31 percent believing it will be above 5 percent.
"Trends around M&A are increasing from last year, with a general optimism about the impact...for efficiency and revenue," the report said. It added that as many as three-quarters of the executives queried say the mergers may actually result in a greater focus on care as opposed to business efficiency.
A total of 63 percent polled said they had been involved with a merger or acquisition in the past year, although 50 percent said they were the acquirer as opposed to the acquired.
But executives are also concerned about rising health costs and how it may create an outsized burden for consumers. Sixty-three percent said they thought costs were too high, and 95 percent believe that consumers seek new ways to manage their healthcare costs.
The numbers reflect a Gallup poll released late last year that concluded the number one healthcare concern for Americans is costs.
"Executives perceive that these overwhelming costs are damaging care and that many consumers may be sacrificing care to save money," the report said.
Moreover, healthcare executives may find themselves challenged in the coming years by the growing consumer notion that high healthcare costs have little connection to the actual quality of the care delivered.
To learn more:
- read the CIT survey (.pdf)