Business
Hospital spending set to increase
NEWS IN BRIEF — Posted March 22, 2004
Hospitals expect to increase capital spending by an average of 14% over the next five years, according to a new survey, though experts said some hospitals may struggle to afford the expenditures.
Driving the trend were plans to increase capacity, upgrade technology and stay ahead of asset deterioration, according to the Healthcare Financial Management Assn., which surveyed 460 chief financial officers at hospitals and health systems nationwide and found that nearly 75% of them planned to boost capital spending.
The projected growth is a stark departure from the period between 1997 and 2001, when hospitals increased capital spending by an average of just 1%, the report said.
Richard L. Clarke, HFMA president and chief executive, said the report confirms that plans to significantly increase capital spending may be achievable for hospitals with strong financial performances.
"Financing the Future," was the third in a series of six reports on capital spending in health care. Previous reports examined access to capital and capital investments to keep ahead of asset depreciation.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/03/22/bibf0322.htm.
