Staffing companies must keep up amid healthcare cost-cutting pressure, report says

The pressure healthcare providers face to reduce costs is forcing changes among staffing companies, according to a new report from S&P Global Ratings.

"Healthcare providers are grappling with the ever-rising pressure to control costs," said S&P credit analyst Sarah Kahn in a news release. "While they have turned to outsourcing staffing, their intense focus on cost cutting has put significant pressure on staffing companies to lower prices, increase the value they add by either specializing or expanding their menu of services, or both."

The agency said it expects staffing companies will have fewer clients if they don't offer what hospitals need to reach their value-based care goals.

S&P’s outlook on the staffing industry is stable.

 

 

More articles on healthcare finance: 

House health panel holds hearing on surprise billing: 5 takeaways
5 tips from hospital CFOs
Cost-cutting trails revenue growth as 2019 priority, hospital CEOs say

 

© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Top 40 Articles from the Past 6 Months