Independence
01-20-2009, 02:46 PM
Slumping Economy Makes Hospitals Sick
Lisa LaMotta, 01.19.09, 02:40 PM EST
The health care industry is forced to cut capital, close units and freeze hiring, a survey shows.
Cardinal Health Inc.
BATS Real-Time Market Data by XigniteAs the economy worsens, hospitals have been forced to cut capital spending dramatically, which has taken its toll on the industries that supply and serve them.
A report released Monday by a non-profit advisory firm showed that hospitals across the U.S. have had to introduce hiring freezes, cut capital spending and close unprofitable locations. The impact on the way Americans receive health care can already be seen on numerous troubled balance sheets.
The Noblis Center for Health Innovation's survey of 36 hospital systems across the country in late 2008 showed that the majority of these hospital systems have had trouble accessing capital in the last six to nine months, and many expect it to get worse. They have also cut back on capital spending for any unnecessary devices.
The medical supply and medical device arena has already been impacted by the shift in spending. Earlier this month, Cardinal Health (nyse: CAH - news - people ) was forced to lower its fiscal-year guidance due to cuts in hospital spending. (See "Frugal Hospitals Hurt Cardinal Health.") The Dublin, Ohio-based medical product manufacturer said that the slowdown in hospital spending on medical products had hurt its clinical and medical products business; 60.0% of sales come from non-disposable medical supplies.
Read More : http://www.forbes.com/healthcare/2009/01/19/noblis-heath-survey-markets-econ-cx_lal_0119markets16.html
Lisa LaMotta, 01.19.09, 02:40 PM EST
The health care industry is forced to cut capital, close units and freeze hiring, a survey shows.
Cardinal Health Inc.
BATS Real-Time Market Data by XigniteAs the economy worsens, hospitals have been forced to cut capital spending dramatically, which has taken its toll on the industries that supply and serve them.
A report released Monday by a non-profit advisory firm showed that hospitals across the U.S. have had to introduce hiring freezes, cut capital spending and close unprofitable locations. The impact on the way Americans receive health care can already be seen on numerous troubled balance sheets.
The Noblis Center for Health Innovation's survey of 36 hospital systems across the country in late 2008 showed that the majority of these hospital systems have had trouble accessing capital in the last six to nine months, and many expect it to get worse. They have also cut back on capital spending for any unnecessary devices.
The medical supply and medical device arena has already been impacted by the shift in spending. Earlier this month, Cardinal Health (nyse: CAH - news - people ) was forced to lower its fiscal-year guidance due to cuts in hospital spending. (See "Frugal Hospitals Hurt Cardinal Health.") The Dublin, Ohio-based medical product manufacturer said that the slowdown in hospital spending on medical products had hurt its clinical and medical products business; 60.0% of sales come from non-disposable medical supplies.
Read More : http://www.forbes.com/healthcare/2009/01/19/noblis-heath-survey-markets-econ-cx_lal_0119markets16.html