What Lies Ahead for Capital Expense Budgets?
Bob Lavoie, who heads the New York office of L.E.K. Consulting and co-leads their MedTech Practice, says while hospital leaders are increasingly looking for more than a strong return on investment. He explains that healthcare leaders making large medical equipment purchases now will want more than a promise that the item will save time or improve processes or outcomes—they’ll want proof.
“[Healthcare leaders] will want the vendor to show them a similar 135-bed hospital that has achieved the same kind of value-based outcomes the product claims to achieve and they are hoping for,” he says. “More forward-thinking vendors will be working toward quantifying the impact in terms of hard- and soft-costs on their products. And more forward-thinking hospitals are going to expect some risk-sharing if a product that touts certain efficiencies doesn’t produce.”
Whether vendors step up to provide more than just promises remains to be seen. However, at least for now, both the HealthLeaders and L.E.K. Consulting reports seem to indicate that 2011 won’t be a big year for capital spending—which means I’ll be revisiting this topic again in 2012 to see what the future holds for hospitals.
Karen Minich-Pourshadi is a Senior Editor with HealthLeaders Media.
- Patient Harm Data to Remain on Medicare's Hospital Compare Site
- Quiet ORs Better for Patient Safety
- Leapfrog Hospital Safety Scores 'Depressing'
- Tavenner Confirmed as CMS Administrator
- Building a Better Healthcare Board
- CMS Seeks to 'Rapidly Reduce' Medicare Spending with $1B in Grants
- Hard-Nosed About Physician Teamwork
- Rural Healthcare Can Entice the Best and Brightest
- How Medical Debt Forgiveness Benefits Hospitals
- Healthcare Leaders Sound Off on Organized Labor