Revenue Cycle

Group buys offer relief from tough financial conditions

Hospital Materials Management, August 1, 2009

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The majority of hospitals are struggling to access capital and have been forced to cut spending, according to the Healthcare Financial Management Association’s January report, The Financial Health of U.S. Hospitals and Healthcare Systems.
Significant cuts in capital expenditures, which can account for up to 25% of a hospital’s budget, are likely, the report states.
Similarly, the National Economic Impact Survey released by the Irving, TX–based GPO Novation in February found that more than 69% of respondents say they are delaying or canceling equipment projects.
Hospitals are not alone in their struggle. In an April 1 Dow Jones article, JPMorgan analyst Michael Weinstein said medical equipment makers are beginning to suffer, largely because the majority of U.S. hospitals are under a capital budget freeze.

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