Fleming's thoughts should telegraph the significance of the global economy to all healthcare financial leaders because labor costs account for 40%-60% of most hospital budgets.
After all, hospitals and health systems must adhere tightly to their budgets if they are to succeed in the changing payment environment. And if supply prices for everything from gauze and gurneys are increasing, hospital finance executives may have to look at labor decreases to offset price constraints set off by activity in the global market. Fleming, however, offers a couple of other thoughts for financial leaders:
"There have been a [number] of factors affecting the global prices this year, but remember economies are also cyclical and what goes up must come down," says Fleming.