New Survey Finds Costs Top of Mind for Providers Across Care Continuum
Nationwide Survey finds a majority of Ambulatory Surgical Centers (76%), Cancer Centers (71%), Home Health Agencies (74%) and Physician Practices (56%) focused on reducing costs
IRVING, Texas, July 15, 2013 /PRNewswire/ -- Provista, a leading supply chain improvement company, today announced the results of a nationwide survey of 359 administrators, directors and office managers in ambulatory surgical centers (ASC), cancer centers, home health agencies and physician practices about the issues impacting purchasing in their organizations over the next year. The survey found the majority of organizations, nearly 70 percent of respondents, are actively reducing costs in reaction to changes brought by healthcare reform.
Of the organizations surveyed, the majority of ASCs and cancer centers are most confident in their ability to adapt to industry changes brought by reform, however, physician practices and home health agencies are less so. All organizations surveyed cite declining reimbursements as their primary challenge but are taking different steps to adapt ranging from partnerships and collaborative care models to diversifying services. While many providers are holding off purchasing in some categories, investments in computers and software remain strong.
Key findings include:
Ambulatory Surgical Centers
- Seventy-two percent of respondents are confident in their ability to adapt to healthcare reform but cite declining reimbursement rates (72 percent), operating costs (66 percent) and increased regulations (38 percent) when making business decisions.
- To prepare for healthcare reform, a majority of respondents are cutting costs (76 percent), expanding and diversifying services (39 percent) and considering a joint venture with a hospital (13 percent).
- Forty-five percent of ASC respondents expect their capital equipment purchases to remain the same and 73 percent report physician preference purchases will stay the same.
- Major purchases by ASCs over the next 12-months include operating room equipment (49 percent), computers and software (37 percent) and monitoring equipment (23 percent). In the next 12-months surgery centers plan to make limited investments in monitoring equipment (23 percent), diagnostic imaging (8 percent) and lab equipment (7 percent).
Cancer Centers
- Sixty-six percent are confident in their ability to adapt to healthcare reform but cite declining reimbursement rates (88 percent), drug costs (60 percent) and general operating costs (42 percent) as key challenges.
- The majority of cancer center survey respondents are cutting costs (71 percent), expanding and diversifying services (42 percent) and considering a joint venture with a hospital (23 percent) as a means to meet the economic challenges of healthcare reform.
- Within the sector, major purchases over the next 12-months include computers and/or software (50 percent), furniture (35 percent) and exam tables (25 percent). In contrast, they intend to spend less on diagnostic imaging (13 percent), radiation therapy systems (10 percent) and lab equipment and infusion pumps (12 percent).
Physician Practices
- Forty percent have a high level of confidence in the ability to adapt to a new healthcare landscape, 40 percent are somewhat confident.
- To prepare for healthcare reform, the majority of physician practices are cutting costs (56 percent), expanding services/diversifying (41percent), or joining/already in an ACO (29 percent).
- Key areas identified for purchasing over the next 12 months include computer and/or software (58 percent), malpractice insurance (30 percent) and furniture (28 percent). In the next 12 months, physician practices plan to make limited investments in exam tables (16 percent), telehealth monitoring equipment (10 percent) or lab equipment (10 percent).
Home Health Agencies
- Forty-six percent have a high level of confidence in the ability to adapt to a new healthcare landscape (42 percent were somewhat confident). The majority cited declining reimbursement rates (79 percent) and operating costs (60 percent) as key challenges.
- 74 percent of respondents said their organization will prepare for the health reform by cutting costs, 58 percent said expanding services/diversifying into other areas, 16 percent said participating in ACOs.
- Sixty-one percent said their future home health purchases include computer and/or software, and 25 percent said telehealth monitoring systems.
"Building on last year's survey, we wanted to determine if there were any significant shifts in the attitudes and opinions of our customer base," said Rosario Jacinto, Provista's market intelligence manager. "This year, we expanded the scope to include cancer centers, physician practices and home health agencies to provide a broader snapshot of the current challenges our customers are facing so that we can better their needs with best pricing and innovative solutions."
About Provista
Provista is one of the country's leading supply chain improvement companies, and helps nearly 70,000 non-acute healthcare facilities and more than 1,200 acute care facilities reduce and control their supply costs while streamlining the procurement process. Provista customers have access to the most comprehensive portfolio of products and services at the most competitive pricing through Novation, Provista's supply contracting company. For more information, visit www.provistaco.com or follow us on Twitter @ProvistaGPO.
SOURCE Provista
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