RevCycle Intelligence: Hospitals Lagging with Healthcare Cost Transformation Efforts
About 86 percent of executives say healthcare cost transformation is needed for value-based care and competition, but few reported reducing costs in the past year.
Healthcare cost transformation is a top hospital and health system need. But less than one in five executives reported cost reductions of more than five percent in any priority area in the last year, a new Kaufman Hall survey shows.
“US hospitals are facing increasing pressures, so these percentages need to be much, much higher,” Lance Robinson, Managing Director at Kaufman Hall, stated in a press release. “The combined effect of the shift to a new business model, competitive pressures from expanding health systems, new retail options that are siphoning off high-margin services, and the need to raise capital for strategic growth initiatives is quickly putting hospitals in an untenable position.”
About 86 percent of the 190 senior executives recently surveyed said healthcare cost transformation is a significant need for their hospitals and health systems.