Hospitals and health systems are cutting back, not only on capital spending, but also on unprofitable healthcare services, according to a new study by the Noblis Center for Health Innovation. They're doing so out of necessity, as profitability continues to be a major concern for hospital leaders, the study noted.
More than 56 percent of survey respondents saw a decrease in operating margins over the last quarter, and 39 percent expect a decrease in the next 12 months, researchers said.
Meanwhile, investment income is tanking as well. Most hospitals lost money on investments last year, and may very well do the same this year, according to the report.
Despite the gloom and doom, there was at least one potential bright spot in the report: 71 percent of Noblis Center respondents said that they expect inpatient utilization to grow slightly in 2009, and 82 percent expect outpatient utilization to grow this year.
To learn more about the study:
- read this HFMA News item
Related Articles:
What to do while the financial market crisis subsides
CSC survey reveals hospitals find current recession far worse than last downturn