In its Spring 2012 Economic Outlook report, Premier healthcare alliance reported that impending reimbursement reductions and uncertainty around the potential impact of health reform will likely lead to more conservative hospital capital budget expenditures for the year.
Sixty-five percent of the 730 survey respondents indicated that capital budget expenditures for 2012 remained flat or increased as compared to 2011. This is down from 69 percent in fall 2011 and 72 percent a year ago. However, 35 percent of respondents suggested a decrease in capital expenditures, versus 31 percent in fall 2011 and 28 percent a year ago.
“Our members have expressed that their capital budgets will be pressured as reimbursement declines over the coming years, and economic uncertainty further convolutes the situation,” said Premier COO Mike Alkire. “But we expect that, as history has shown, we’ll see a correction in upcoming months and years, even though this is a unique time in healthcare.”
Future reimbursement cuts were cited by 76 percent of all respondents as one of the top three trends having the largest impact on their organizations over the next 12 months, with 53 percent citing healthcare information technology (HIT) requirements. Forty-three percent of respondents expect to make the largest capital investments over the next 12 months in HIT and telecommunications, up from 35 percent last spring.
“Advanced HIT is a necessity as we’re facing new models of care delivery to include accountable care,” said Alkire. “Providers need capabilities beyond EHRs to facilitate true population health management and connect care across various care sites and the continuum of care. Providers need relevant, meaningful and real-time information at the point-of-care delivery to make data-driven decisions about how to treat patients.”
“Today most hospitals are only able to measure the procedures they perform,” he added. “Combining data from inpatient and outpatient settings with claims data will help produce actionable information that supports care interventions to help ensure patients receive the most effective and informed treatments possible.”
Other survey results include:
- Forty-one percent of c-suite respondents selected health legislation as the greatest or second-greatest driver of healthcare costs.
- Physician employment has grown across the board, with 61 percent of respondents indicating that up to half of their practicing physicians were employed through hospital-owned practices, compared to 55 percent last fall.
- Half of respondents expect an increase in patient admissions this year as compared to 2011, with the other half anticipating admissions to remain flat or decrease. These results may signal a plateau in expected patient admissions, as 60 percent indicated growth in admissions last fall.
- Twenty-nine percent of non-acute care respondents expect patient admissions in that sector will increase by more than 5 percent. That is an 18 percent increase since last fall.
Follow HFN Editor Rene Letourneau on Twitter @ReneLetourneau.