Hospital Cost/Capital Survey Shows Room for Cost Savings
April 15—Although the average hospital expects to see continued pressure on pricing, the price/cost spread remains favorable for hospitals, according to the latest quarterly hospital industry survey from Bank of America Merrill Lynch Global Research.
The median pricing expectation is for a 2.5 percent increase in 2013. Respondents, who included representatives from 50 U.S. hospitals across 17 states, expected commercial pricing rates to rise 1 percent in 2013.
Meanwhile, survey respondents expected the average Medicare rate to increase 0.7 percent in 2013, consistent with sequestration cuts. Medicaid rate increases are expected to increase 1.0 percent.
The difficulties not-for-profit hospitals face in accessing capital, combined with the spending requirements for healthcare IT, have contributed to a robust merger and acquisition environment, survey responses indicated.
Publication Date: Monday, April 15, 2013