CFOs Eye Brighter Financial Days Ahead
Earlier this month, however, Cain Brothers released its Industry Insights Report noting, "As the U.S. is now emerging from economic recession, hospitals will need an increasing level of capital, for both new and deferred capital projects, in an effort to remain competitive in an industry characterized by a high degree of capital intensity, constant innovation in equipment and information systems, and the rapid obsolescence of technologies."
Waring says the GE Capital survey reflects that idea with an uptick in capital expenditure expectation. "They pushed the pause button in 2009-10 and now there's a pent-up demand for capital investment. So … CFOs are less optimistic about the economy than other CFOs, but we are starting to see folks spending capital dollars again," he said.
And there's one more thing to be positive about. According the GE Capital survey, 33% of Healthcare CFOs expect profit margins to increase this year (up 3% since Q1 2010), with another 35% expecting profit margins to remain the same (up 6% since Q1 2010). Financial leaders may be pessimistic about healthcare reform, but it looks like the financial future of healthcare may be brightening.
Karen Minich-Pourshadi is a Senior Editor with HealthLeaders Media.
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