Poor financial results are driving hospitals to cancel managed care contracts at an alarming rate, but CEOs are hopeful about the marketing potential of nontraditional revenue
streams. Overall, nearly one-third of U.S. hospitals cancelled an HMO contract over the last one to two years. That level soars to 60% for large hospitals with more than 500 beds,
according to the latest Deloitte & Touche U.S. Hospitals and the Future of Health Care biennial report. The survey was released last month at an industry conference in
Orlando.
Despite short-term financial pressures, CEOs are optimistic about the long-term staying power of hospitals. Up from 57% 10 years ago, the survey found that 75% of CEOs expect
their organizations to still be operating in five years. This increased optimism is translating into executives being more open-minded about nontraditional retail opportunities,
like alternative medicine programs. Twenty-five percent of inner city hospitals and 32% of large hospitals offer alternative therapies.
The study surveyed 5,015 acute care hospitals.
(Deloitte & Touche, Eleanor Haussler, 513/784-7355)