5 Most Dangerous Trends Facing Hospitals
Robert Smith and Associates
July 18, 2006
American Art Resources (AAR) today announced the results of a Fortune 500 research report for the Hospital CEO Forum. The report entitled “the 5 Most Dangerous Trends Facing Hospitals” has one of the most innovative solutions to the coming acceleration in America’s growing hospital crisis.
The shocking results from this investigation discovered that Americas hospitals are in trouble.
Experts predict an estimated shortage of 150,000-200,000 beds nationwide by 2012 because of profitability issues. (Source: J.D. Powers, JHACO, Hospital & Health Networks, M.T.I.B)
The 5 Most Dangerous Trends are:
1) Bottom line performance is not improving
Efficiency and cost cutting policies are not working. While hospitals have been going out of business at a rate of one hospital every 8 days for the last 30 years, the bankruptcy trend has started to accelerate in 2005.
2) Cutthroat competition to our medical centers include medical tourism.
Medicare and Medicaid recent reimbursement reductions have made it harder for medical centers to survive. Competition from diagnostic testing facilities, ambulatory surgery centers and specialty hospitals are growing at record rates. India has recently become an early threat with two (2) hospitals that have been approved by the JHACO.
3) Public is losing confidence in our hospitals.
35% of patients indicate a likelihood of not returning to the same hospital. 41% wouldn't recommend a hospital to their family.
4) Staff satisfaction is low
Nursing shortage of more than 1 million nurses as well as significant shortages in pharmacists, lab technicians, and other technical employees are expected by 2010. The hospital working environment is a key contributor to the 20% average burnout and staff turnover.
5) Lawsuits are on the rise
Medical malpractice has grown at an annual rate 30% faster than for all U.S. tort cases. The average malpractice settlement more than tripled from $95,000 in 1986 to $320,000 in 2002.
The Hospital CEO Forum was created to improve on the education model that teaches hospital executives how to survive in a tough economy, improve patient outcomes, mitigate staff stress, reduce medical errors and improve bottom lines.
The shocking results from this investigation discovered that Americas hospitals are in trouble.
Experts predict an estimated shortage of 150,000-200,000 beds nationwide by 2012 because of profitability issues. (Source: J.D. Powers, JHACO, Hospital & Health Networks, M.T.I.B)
The 5 Most Dangerous Trends are:
1) Bottom line performance is not improving
Efficiency and cost cutting policies are not working. While hospitals have been going out of business at a rate of one hospital every 8 days for the last 30 years, the bankruptcy trend has started to accelerate in 2005.
2) Cutthroat competition to our medical centers include medical tourism.
Medicare and Medicaid recent reimbursement reductions have made it harder for medical centers to survive. Competition from diagnostic testing facilities, ambulatory surgery centers and specialty hospitals are growing at record rates. India has recently become an early threat with two (2) hospitals that have been approved by the JHACO.
3) Public is losing confidence in our hospitals.
35% of patients indicate a likelihood of not returning to the same hospital. 41% wouldn't recommend a hospital to their family.
4) Staff satisfaction is low
Nursing shortage of more than 1 million nurses as well as significant shortages in pharmacists, lab technicians, and other technical employees are expected by 2010. The hospital working environment is a key contributor to the 20% average burnout and staff turnover.
5) Lawsuits are on the rise
Medical malpractice has grown at an annual rate 30% faster than for all U.S. tort cases. The average malpractice settlement more than tripled from $95,000 in 1986 to $320,000 in 2002.
The Hospital CEO Forum was created to improve on the education model that teaches hospital executives how to survive in a tough economy, improve patient outcomes, mitigate staff stress, reduce medical errors and improve bottom lines.
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