A new report from the Noblis Center for Health Innovation has found that hospitals and health systems across the United States are cutting back on both capital spending and unprofitable healthcare services as a result of the economic crisis.
The study found that more than 56 percent of respondents saw a decrease in operating margin over the last quarter, and 39 percent expect a decrease in the next 12 months. Of even greater concern were investment losses, which were significant last year and remain uncertain for 2009. Virtually all respondents who recently attempted to access capital or refinance encountered difficulties in doing so, and two-thirds had halted, resized, or changed major capital projects. As major construction projects wind down, philanthropic prospects for the coming year are also diminished.
While overall profitability is a concern, most respondents believe that utilization at their facilities will continue to grow. Seventy-one percent of respondents expect inpatient utilization to increase slightly during the next 12 months, and 82 percent expect outpatient utilization to increase in the same time period.
Read the report.
