Noblis Predicts Hospital Trends, Sees Vulnerability

June 24, 2011
The Falls Church, Va.-based Noblis Center for Health Innovation says that due to the combined factors of access to capital becoming more restricted,

The Falls Church, Va.-based Noblis Center for Health Innovation says that due to the combined factors of access to capital becoming more restricted, a significant decline in philanthropic giving, dwindling investment income, increasing bad debt and growing charity care, many hospitals and health systems are extremely vulnerable. The Center predicts five trends that will impact provider delivery in 2009:

  • Consumer demands will continue to change and utilization will be stable or even decline as consumers delay in seeking routine care; consumers will seek medical information/knowledge via Web resources; and medical travel will increase.
  • 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 and most hospitals will trim their operating budgets, resulting in hiring freezes and lay-offs. The healthcare construction boom will continue, but at a much slower rate.
  • The health care industry will consolidate even further as hospitals 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.
  • The workforce will be in transition. Physician responses will include slowed/delayed retirements, seeking employment/practice purchase, and decreased acceptance of no pay/slow pay. Innovative staffing alternatives will be explored by hospitals and physicians and nursing vacancies may lessen.
  • Health reform will not be universal, but 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.

Sponsored Recommendations

Data: The Bedrock of Digital Engagement

Join us on March 21st to discover how data serves as the cornerstone of digital engagement in healthcare. Learn from Frederick Health's transformative journey and gain practical...

Northeast Georgia Health System: Scaling Digital Transformation in a Competitive Market

Find out how Northeast Georgia Health System (NGHS) enabled digital access to achieve new patient acquisition goals in Georgia's highly competitive healthcare market.

2023 Care Access Benchmark Report for Healthcare Organizations

To manage growing consumer expectations and shrinking staff resources, forward-thinking healthcare organizations have adopted digital strategies, but recent research shows that...

Increase ROI Through AI: Unlocking Scarce Capacity & Staffing

Unlock the potential of AI to optimize capacity and staffing in healthcare. Join us on February 27th to discover how innovative AI-driven solutions can revolutionize operations...