Materials management executives continue to be concerned about the financial health of their facilities according to a survey released by healthcare supply contracting company, Novation. The current economic environment and increasing industry demands are the executives' biggest worries.
Materials management executives with VHA and the University HealthSystem Consortium, healthcare alliances served by Novation, said the top three concerns their facilities face in today’s economic climate are reimbursement cuts, the impact of healthcare reform and reduced operating margins.
"As financial pressures continue to squeeze hospital budgets, many of the members we serve are forced to make difficult decisions to cope with these demands,” said Pete Allen, senior vice president, sourcing operations, Novation, in a statement about the survey results. “Many must make focused efforts to reduce costs, yet the demand for health services is not decreasing.”
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Key survey findings include:
• When asked about their level of financial recovery following the economic downturn, only 20 percent of respondents indicate that they have experienced significant financial improvement. The majority of respondents, 48 percent, indicate their financial situation has worsened, while 31 percent indicate they have seen no change.
• Sixty-five percent of respondents have seen an increase in the cost of care related to meeting new patient safety standards and new environmental standards.
• Because of the challenging economic environment, 94 percent of respondents foresee either a decrease in staffing or no change at all. Six percent predict an increase in staffing. Of that 6 percent, all expect to see a staff increase in nursing.
• The opinions regarding supply spending are less unified. Thirty-three percent of the respondents foresee an increase in supply spending at their facilities over the next year, while 45 percent expect a decrease and 23 percent do not anticipate any change.
• Anticipated growth in clinical product spending is varied. For example, 43 percent of respondents foresee an increase in surgical procedures and 51 percent foresee an increase in spending on orthopedic products, but only 27 percent and 36 percent anticipate an increase in spending on spinal products and cardiology products respectively.
• Fifty-four percent expect their purchasing of new technology to increase over the next year, and 48 percent foresee an increase in pharmacy spending.