Survey: CFOs Optimistic But Concerned About Healthcare Costs

Most CFOs in America believe the U.S. economy and their organizations will have a positive 2014, but one of the biggest looming negative impacts will be healthcare costs, according to the Bank of America Merrill Lynch CFO outlook survey for 2014.

The survey interviewed 751 CFOs and finance directors who work at various U.S. companies with annual revenue between $25 million and $2 billion. The interviews took place from September to November.

Fifty-four percent of respondents said they expect their companies' sales will be higher in 2014 than in 2013, while 37 percent said revenue will likely stay the same. When asked about the biggest challenges facing the U.S. economy, two-thirds of CFOs said rising healthcare costs were their biggest concern. U.S. government effectiveness and budget deficit talks were right behind healthcare costs.

However, about 75 percent of respondents said even though healthcare costs are becoming more problematic, their companies are "completely" or "mostly ready" to comply with the new regulations within the Patient Protection and Affordable Care Act. More than half said they expect labor costs to rise due to the PPACA, but companies will shift more of the burden of paying for healthcare onto their employees.

More Articles on CFO Issues:
75% of Employers See Hospitals as Top Drivers of Healthcare Costs
Are CFOs Gaining Confidence in the Economy?
16 Statistics: Salaries and Cash Compensation for Hospital and System CFOs

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