What Lies Ahead for Capital Expense Budgets?
Robin LaBonte, CFO at the 79-bed York Hospital, in York, ME, is facing the same sort of reality. “Expanding your footprint costs more money, and right now it’s about being tight and using your space better--making what you have now look better and working with your existing space,” says LaBonte,.
When healthcare reform legislation was passed last March, a flurry of proposed and pending changes arrived with it. The Patient Protection and Affordable Care Act, with its “health insurance for all” axiom called for larger numbers of insured patients—thus more Medicaid admissions—which at first blush sounded like a positive and potentially profitable outcome of the law. Alas, along with the newly insured came an edict that select reimbursement rates would be cut, forcing hospitals to once again concentrate on increasing efficiency and reducing expenses.
Regardless of the need for efficiency and expense reduction, CFOs are putting some necessary projects back in their budgets—like technology and large equipment—but adding a building or a wing is still lower on the priority list. In a report released in February by L.E.K. Consulting, a moderate percentage of respondents planned to increase their purchasing in terms of facilities (38%), with the purchase of large medical devices running a close second at 37%, and small medical device purchases at 21%.
However, while healthcare financial leaders may not be pursuing these purchases in large numbers yet, the L.E.K. Consulting report also found that nearly 60% of hospital executives expected their budgets to increase this year and over the next five years, and more than 70% of hospital executives foresee expanded budgets.
“Budgets are tight, but we all know we still need to advance clinical technology and balance that with our EMR technology needs,” says LaBonte.
- CNO Leads $1M Charge for New Scrubs, Uniforms
- NFP Hospitals' Revenue Growth at 'All-Time Low'
- Transforming Cancer Care
- Acute Kidney Injury Gets New Focus
- Interventional Radiology No Longer a Sub-Specialty
- Sharp HealthCare Leaves Pioneer ACO Program
- Half of All Primary Care, Internal Medicine Jobs Unfilled in 2013
- mHealth Tackles Readmissions
- MA an Insurance Proving Ground for Providers
- Proton Beam Therapy Poised for Growth in US