Healthcare executives maintain a relatively positive outlook for the upcoming year, according to the CIT Healthcare Industry Outlook. The majority remain optimistic, expecting similar growth to last year in revenue, prices, volume and capital spending. Many other non-financial trends within the industry are also seen as having a beneficial impact on consumers and the quality of care being delivered.
For one, trends around mergers & acquisitions (M&A) are increasing from last year, with a general optimism about the impact, especially on the industry side, for efficiency and revenue. About three-quarters of executives also believe that increased M&A may result in a greater focus on care (over business administration.)
Second, most executives anticipate a continued–and increasing–reliance on technology that should improve quality and reduce costs. But with higher stakes, the challenge will be how to seamlessly incorporate technology industry-wide without compromising security.
Despite the optimistic tone, however, healthcare costs continue to be an untenable uphill battle for consumers, with no improvement over last year. Executives perceive that these overwhelming costs are damaging care and that many consumers may be sacrificing care to save money. Many executives claim they are working to figure out ways to alleviate this problem. In addition, executives are more open to government involvement with regulating the industry, but there is very little consensus on how to measure success and utilize outcomes.
The study was commissioned by CIT and conducted online by Harris Poll within the United States between Feb. 18-29, 2016, among 164 executives within the healthcare industry. Defining characteristics are: Executive title: Board member (9%), CEO (22%), COO (6%), CFO/Treasurer (11%), Other C-level executive (7%), SVP/VP/Director (11%), Head of business unit (11%), Head of department (21%) Company revenue: $25 million to $99 million (66%), $100 million to $249 million (19%), $250 million to $499 million (10%), $500 million to $749 million (4%), $750 million to $1 billion (2%) Industry: Those represented include hospitals/medical centers (36%), healthcare technology (16%), primary care facilities (9%), skilled nursing facilities (9%), specialty care facilities (8%), medical devices and medical supplies (6%), pharmaceuticals (5%), home health and hospice (4%), biotech (3%), other inpatient hospital (2%), behavioral health facilities (1%), outpatient treatment facilities (1%), and other healthcare-focused (1%).