Despite Financial Pressures, CEOs Are Optimistic

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.