10 Thoughts From the C-Suite on Healthcare Reform, Hospital Strategy

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More hospital and health system leaders reported declining operating margins this year compared to last, but more executives also said their organizations will engage in non-hospital growth strategies, according to a recent survey.

MedAssets conducted the poll at its 2014 Healthcare Executive Forum, held Jan. 30 to Feb. 1, 2014 in Scottsdale, Ariz. Findings are based on responses from 150 hospital and health system executives in attendance.

55 percent of attendees reported a decline in operating margins year over year in fiscal year 2013, opposed to 26 percent in fiscal year 2012. The top reasons for the dip were attributed to shift in payer mix and reimbursement reduction.

• Nearly 60 percent of respondents cited they are experiencing declining Medicare reimbursements, managing the impacts of Medicaid expansion and state exchange enrollment, experiencing increased pressure from private payers and seeing more regional competition.

71 percent of attendees said clarity of strategy and execution was critical for successful organizational transformation.

89 percent of attendees — up from 63 percent in 2013 — reported their health systems will acquire and engage in non-hospital growth strategies over the next two years.

43 percent of attendees thought having a high-quality, clinically integrated organization is the most successful growth strategy versus solely a strong geographical footprint.

59 percent of attendees indicated that physician groups have been the most important partner over the past three to five years, and 48 percent of attendees are confident this will remain the same in the next five years.

34 percent of attendees, however, indicated insurance companies will emerge as the most important partner.

More Articles on Hospital and Health System Executive Surveys:

11 Most Concerning Issues for Hospital CEOs
Survey: Hospital CEOs Expect 12% Reduction to Operating Expenses by 2020
Survey: Number of Providers in ACOs Up 5% in 6 Months

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