Hospitals and health systems are taking cost transformation more seriously as they grapple with revenue and expense pressures, according to a Kaufman Hall/Healthcare Financial Management Association survey.
The survey of 169 U.S. hospital and health system leaders found only 4 percent of respondents said their organizations do not need to remove any current costs over the next three years to pay for planned investments and remain financially sustainable. Forty-four percent of respondents said their organizations need to remove 6 percent to 10 percent of current costs during that period, while 40 percent of respondents said their organizations need to remove 1 percent to 5 percent of current costs.
This compares to last year when 32 percent of hospital and health system leaders said their organizations had not established a cost reduction goal for the next five years.
This year's survey — which was fielded in August and September — notes the findings come as hospitals and health systems face revenue pressures such as flat or declining inpatient volumes and expense pressures such as rising salary and wage inflation.
Read more about the survey here.
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