Hospitals shouldn’t expect relief from revenue squeeze
The story “Hospitals squeezed as revenue growth slows to all-time low” (ModernHealthcare.com, Aug. 27) should come as no surprise to anyone who has been involved in the business of healthcare over the past couple of years. In an effort to reduce the cost and increase the efficiencies of healthcare, almost all countries have initiatives to do more with less when it comes to delivery of healthcare services.
The second driver that will squeeze healthcare spending further and put more pressure on hospital profits is the trend for people to take more responsibility for their personal well-being. You see this manifested in the rapid growth of personal health-monitoring devices, with entry into that market by giants such as Apple, Google and Samsung. There’s also the awareness among businesses that keeping their employees healthy is good for the bottom line.
The need for healthcare-delivery organizations—and businesses that sell into this market—to develop long-term strategies to adapt to this change is a requirement for their future. As the article points out, the change has started and will only accelerate over time.
Dennis Lottero Global M2M business development manager, healthcare Vodaphone