Healthcare CEOs Expect Flat to Negative Financials in 2014

Philip Betbeze, for HealthLeaders Media , January 31, 2014

Perhaps some of the angst reflected in the responses to this question is temporary. Many CEOs, after all, have not paid the proper level of attention to making these investments prospectively, as their systems have continued to operate largely under fee-for service payment schemes. In a sense, and paradoxically, a deferment of investments in critical labor and infrastructure needed to compete under a largely value-based reimbursement methodology helped keep from infringing on results to this point. But that bill is now coming due.

The writing has been on the wall for several years now that hospitals and health systems would have to change the way they do business. Deferring might have been nice or even necessary, but others are now way ahead.

Catching up may not be as painful as you think, though you may have a few more years of those expected negative financial returns, and the pain level goes up the longer you put it off. The investment in the future is necessary, if painful.

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