7 Provider Predictions for 2014: Larger Players Will Exert Presence

Tuesday, March 4th, 2014
This post was written by Patricia Donovan

Assessing the industry landscape for healthcare providers, Steven T. Valentine, president of The Camden Group, predicts that the big will get bigger in the year to come in healthcare.

providers 2014

In evaluating the environment around us, what do we look for in 2014? We’re looking at continued consolidation with hospitals. Second, we fully expect to see that some hospitals are going to be repurposed and will move from acute-care into post-acute. They might do it a floor at a time, two floors at a time—an abandoned smaller hospital that they can convert to ambulatory, rehab, or skilled nursing facility (SNF).

Moving forward, we fully expect inpatient utilization to continue the trend of being flat to down. Fourth, we would fully expect bigger providers to get bigger, and the smaller facilities in the suburban areas to struggle more on the volume side. The bigger are going to exert their market presence and try to continue to grow with the critical mass that they have.

Next, we do not expect reimbursement will keep up with the cost that the hospitals and health systems are experiencing. With organized labor, the heavy regulation, the rich paying benefits, the hospital employees greater than outside the hospital, these are some tough areas that the COO’s of many hospitals and health systems are dealing with.

Sixth, hospitals will continue to be capital intensive; everybody wants more money for their IT, as well as for facilities. We fully expect hospitals to continue with physician employment, doing the plan-to-plan so that health systems would pursue plan-to-plan contracting. Lastly, we see geographic concentration; where geography doesn’t really fit, you would let that go.

Excerpted from: Healthcare Trends & Forecasts in 2014: Performance Expectations for the Healthcare Industry

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