In December 2008 five significant issues impacting provider health care delivery in 2009 were predicted by the Noblis Center for Health Innovation, a leading non-profit advisory firm to health providers. Based first quarter results, how do you think they did?
1. Consumer demands will continue to change
– Healthcare utilization will be stable or even decline as consumers delay in seeking routine care.
– Consumers will continue to seek medical information/knowledge via Web resources.
– Medical travel will increase, expanding the competitive environment.
2. Budgets will be trimmed and capital investments delayed
– Margins will decline, negatively affecting investment income, philanthropy, interest payments, unemployment, cash flow, bad debt, and charity care.
– The economic downturn will force most hospitals to trim their operating budgets in 2009, resulting in hiring freezes of non-clinical staff, lay-offs, and other expense reductions.
– The credit market will tighten further and bond ratings will fall, limiting hospitals ability to access capital.
– The recent health care construction boom will continue, but at a much slower rate.
3. The health care industry will consolidate even further
– Hospitals that have historically relied on investment income, municipal funding of indigent and charity care, and low interest rate credit lines will experience an increase in bankruptcies, program closures, and/or hospital closures.
– Small hospitals and rural hospitals will be the most at risk in today’s economy.
4. The workforce will be in transition
– Physician responses to their own financial uncertainties will vary, but will include slowed/delayed retirements, seeking employment/practice purchase, and decreased acceptance of no pay/slow pay (including Medicaid) patients.
– Innovative staffing alternatives will be explored by hospitals and physicians as they seek ways to operate more efficiently and expand volumes without adding cost.
– Nursing vacancies may lessen with some inactive nurses returning to the workforce.
5. Health reform will not be universal, but it will be everywhere
– Healthcare reform will be a high priority on the national level although significant national system reform is unlikely in the short term.
– Hospitals will increase efforts to fund care for their uninsured patients.
If you are experiencing the economic effects on your practice, On Call Medical can assist you with a practice assessment. Practice owners and administrators can openly share their concerns regarding their practice, and review materials such as financial statements, marketing strategies, and practice reports with On Call Medical’s consultant. The program will allow practice owners and managers a structured, unintimidating environment through which to seek help. The strategy session will provide time to analyze detailed areas of the practice, providing for the development of concrete ideas that will help healthcare practices brace for the economic troubles facing healthcare. Call Tony Rinkenberger at 763-544-1000 to inquire about and to participate, or email him at tony.rinkenberger@oncallstaffing.com.
