Report: hospitals affected by economic downturn
A recent study by Novation (Irving, Texas) says that hospitals are indeed suffering from the economic downturn and are making drastic changes in 2009 to adapt. Novation's first National Economic Impact Survey, a forward-looking study of the members of VHA, University HealthSystem Consortium (UHC) and Provista, focused on the economic trends which are impacting hospitals in the next 12 months.
Sixty percent of responding hospitals have seen an impact from the recent economic crisis, and nearly 47% foresee staff cuts in the near future.
"We know that the weakened economy has hit hospitals particularly hard and they are being forced to make some tough decisions," said Jody Hatcher, president/CEO of Novation. "In November, we took a 'no increase' pricing stance. Today, to further help hospitals, we are working with our suppliers to lower their prices — and they are responding positively."