Why Hospitals Should Look for Ways to Transform Their Business Models

A flurry of market forces—uncertainty around healthcare reform, a shift in how clinical care is measured and reimbursed, vulnerability to interest rates and the dawn of digital medicine—are combining to make hospitals re-evaluate their clinical, financial and capital processes and structures.

How can they mitigate risk going forward?

To start, they should prepare for four key trends influencing healthcare in the near term:
  1. Increased short-term interest rates
  2. Greater vulnerability tied to slim operating margins and limited capital
  3. Gradual introduction of the Medicare Access and CHIP Reauthorization Act (MACRA)
  4. Further developments to technology
“We’ll see a spike up in healthcare IT investments for [Electronic Health Records] and post-acute patient care,” BDO’s Patrick Pilch told HFM Magazine in a recent interview. “Technology ultimately will redefine the hospital of the future, with acute care hospitals serving as just one high-cost step along a continuum of care.”

To read more of Patrick’s insights on how hospitals can remain financially viable in an era of uncertainty, download the full article here.

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