Despite the current reimbursement squeeze and credit crunch, execs at U.S. hospitals plan to invest in buildings, equipment and technology over the next two years to stay competitive, according to “Hospital Investments in Competitiveness: Financing Options,” a new survey of hospital CEOs and CFOs sponsored by the law firm of Waller Lansden Dortch & Davis, in conjunction with Prince Market Research. With regards to technology investments, both tax-exempt and investor-owned hospitals—79 percent and 69 percent respectively—see likely capital investments on the horizon for acquiring and upgrading equipment. Survey responses showed that execs plan to use current reserves, tax-exempt bonds and foundation grants to finance the investments.
“All hospitals are faced with the competitive pressure of maintaining up-to-date facilities, technologies and equipment to attract physicians and patients and provide the best quality of care,” said Reggie Hill, head of the Tennessee-based law firm’s healthcare practice. “This study provides a window into the plans and priorities of hospitals and hospital systems throughout the country.”
Based on responses from 464 hospital executives, the report shows that approximately three-quarters of hospitals anticipate capital investments for the renovation of their current facilities. More than half of the tax-exempt hospitals that responded expect to expand their current facilities, while one-third of the investor-owned hospitals have plans for expansion.
Additionally, nearly half of both the tax-exempt and investor-owned hospitals expect to make a major capital investment to offer new services. Almost half the respondents are planning a satellite campus or clinic, according to the report.