Hospital management is preparing for larger budgets over the next several years, and will begin taking many initiatives off of hold status, concludes a new study by L.E.K. Consulting.
According to the survey, nearly 60 percent of the 200 hospital executives polled believe that years of steep budget cuts have come to an end and they expect budget increases this year. That's compared to only 38 percent expecting budget increases for 2010.
Along with the economic recovery, the mandates of healthcare reform are driving the projected increases in spending, notes Healthcare Finance News. It is expected that reform will increase the number of Medicare and Medicaid admissions in the coming years.
"Many hospital budgets are returning to pre-recession levels, and purchasing decisions will face increased scrutiny on price and how well they can support new reimbursement models that focus on outcomes," said Stuart Jackson, vice president and co-head of L.E.K. Consulting's global medtech practice. "Medical supply providers that can deliver broader services, such as good clinical data, will help sway hospitals in their purchasing decisions."
As a result of this trending, more than half of the respondents say they will increase the use of group purchasing organizations by 2015.