What Is In Your Hospital's Future?

A recent article by Emily Friedman entitled “Hospitals We Can’t Afford to Lose” stated that the United States once had more than 7000 hospitals and today there are 5800. Mr. Hugh Greeley gave a presentation in Chicago a few weeks ago in which he gave a prediction that approximately 1000 more hospitals will be closing. This certainly looks like a bleak picture for access to health care.

If the prediction comes true, we have a major health care crisis on the horizon. Here’s some information that adds to the problem:
47 million Americans lack basic health care coverage
There will be an acute shortage of physicians
Almost 1/3 of our physicians are 55 and older
US Healthcare costs are the highest in the world (20% of GNP)

Wonder if your hospital will be one to survive this crisis? It will if its profit margin is between 10-14 per cent, is well managed and can invest in high technology. It won’t survive if it is non-profit in a poor economy environment. What if your hospital is at a break-even or small profit margin? This group represents 60 per cent of our health care facilities.

Wish I had that crystal ball to help predict what the future holds.

Carole La Pine, MSA, CPMSM, CPCS