Hos­pi­tals shouldn’t ex­pect re­lief from rev­enue squeeze

Modern Healthcare - - COMMENT -

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

New York

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