This episode features Nick Thomas, Associate Editor at Becker's Healthcare. Here, he discusses how the state of the economy is impacting major health systems after a challenging 2022.
Summary
Expert Nick Thomas Examines the Impact of the Economy on Healthcare Systems
Healthcare systems are facing huge challenges in the wake of a challenging 2022. Nick Thomas, Associate Editor at Becker's Healthcare, reports that the state of the economy is impacting major health systems across the US.
Monitoring Healthcare System Financial Results
As a healthcare finance expert, Nick Thomas keeps a close eye on financial results from healthcare systems like Mayo Clinic and UPMC. While each story has unique angles to report on, one common theme is reducing reliance on contract labor. In 2022, IU Health reported a significant loss, and Marshfield was downgraded. Although some systems are seeing improvement, it will take time for most to recover. Issues such as government deficit spending, rising interest rates, and investing in permanent staff are all challenges for healthcare systems.
Possible Merger and Acquisition Activity
Struggling systems may be looking towards mergers and acquisitions as a solution to their financial woes. Nick Thomas believes that there may be more merger and acquisition activity in the industry this year as these systems try to get bigger.
The FTC's Scrutiny of Healthcare Systems
Nick Thomas also discussed the Federal Trade Commission's (FTC) scrutiny of healthcare systems in the same geography. He noted that payers have become so dynamic and gigantic that balancing powers between them and healthcare systems has become increasingly difficult. Additionally, insurance companies are making vast profits while most healthcare systems struggle to make ends meet, making for a difficult situation in the industry.
Note: This is an AI generated transcript, not edited by a staff writer and is solely intended for educational purposes. If you have any questions/concerns, reach out to podcasts@beckershealthcare.com
This episode aired on 03/02/2023 and can be listened here.