Executives from group purchasing organization VHA shared the following three predictions for hospitals in 2011.
1. Heightened scrutiny of costs across the continuum of care to counter lower reimbursements. "Hospitals will be forced to manage to lower Medicare reimbursement rates in 2011," says Patricia Tyson, vice president of performance services at VHA. "They will need to proactively position their organizations for these reimbursement reductions by looking at the total cost of procedures across the full continuum of care."
Ms. Tyson says hospitals will be able to compensate for lower reimbursement rates by taking a more patient-centered approach that focuses on integration to improve utilization and streamline care delivery.
2. Capital and construction projects will rise dramatically. "Healthcare reform will continue to force providers to take action in 2011, so that they don’t incur unnecessary risk," says Nik Fincher, vice president of purchased sales and capital at VHA. "We expect to see a dramatic increase of up to 40 percent of new construction projects compared to 2009, along with increased capital purchases which may have been put off or delayed due to the economy."
Mr. Fincher added that he predicts hospitals and non-acute facilities will increasingly opt for recycled and higher-end materials, such as granite and tile for new construction projects. "This shift is being driven by the desire to build facilities that meet baby boomers' expectations of more attractive and comfortable environments," he says. "However, these decisions will be made with a critical eye that ensures the efficiency and sustainability necessary for hospitals to maximize reimbursement under reform."
3. Increased investment in business intelligence will yield greater impact. "Hospitals are focusing more on health IT in general, such as implementing electronic health records to achieve meaningful use. However, hospitals are seeing the value of more immediate investment in business intelligence and analytics, that will produce a swifter return on investment and allow hospitals to identify savings for their organizations that are not tied to reimbursement," says Charlie Rapier, senior director of Analytics at VHA.
Learn more about VHA.
1. Heightened scrutiny of costs across the continuum of care to counter lower reimbursements. "Hospitals will be forced to manage to lower Medicare reimbursement rates in 2011," says Patricia Tyson, vice president of performance services at VHA. "They will need to proactively position their organizations for these reimbursement reductions by looking at the total cost of procedures across the full continuum of care."
Ms. Tyson says hospitals will be able to compensate for lower reimbursement rates by taking a more patient-centered approach that focuses on integration to improve utilization and streamline care delivery.
2. Capital and construction projects will rise dramatically. "Healthcare reform will continue to force providers to take action in 2011, so that they don’t incur unnecessary risk," says Nik Fincher, vice president of purchased sales and capital at VHA. "We expect to see a dramatic increase of up to 40 percent of new construction projects compared to 2009, along with increased capital purchases which may have been put off or delayed due to the economy."
Mr. Fincher added that he predicts hospitals and non-acute facilities will increasingly opt for recycled and higher-end materials, such as granite and tile for new construction projects. "This shift is being driven by the desire to build facilities that meet baby boomers' expectations of more attractive and comfortable environments," he says. "However, these decisions will be made with a critical eye that ensures the efficiency and sustainability necessary for hospitals to maximize reimbursement under reform."
3. Increased investment in business intelligence will yield greater impact. "Hospitals are focusing more on health IT in general, such as implementing electronic health records to achieve meaningful use. However, hospitals are seeing the value of more immediate investment in business intelligence and analytics, that will produce a swifter return on investment and allow hospitals to identify savings for their organizations that are not tied to reimbursement," says Charlie Rapier, senior director of Analytics at VHA.
Learn more about VHA.