Clarkson rewrites the book on hospital marketing.
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Biomedical subjects
Publications and source records attributed to J Johnsson.
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Financial considerations are driving physicians to set up shop for themselves, say hospital CEOs. In fact, two-thirds of respondents say that their hospitals have lost services to competition from physicians. Other CEOs contend that physicians end up competing with their hospital because neither side is able to find common ground for joint ventures.
A recent ruling by the Provider Reimbursement Review Board on an accounting change for hospital bond refinancing may compel some CEOs to reconsider refinancing now. Hospitals may not be able to claim this loss once capital reimbursement is folded into the prospective pricing system, experts warn. Hospitals should accelerate their refundings--assuming, of course, that market conditions are favorable.
Hospitals that don't invest in their employees may be endangering their own survival, hospital CEOs say. Almost 87 percent of 250 hospital CEOs recently polled by Hospitals magazine say that the declining skill level of workers will adversely affect quality of care.
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Martin Diamond, president and CEO of Mt. Zion Hospital and Medical Center, San Francisco, believes a hospital has an obligation to provide community service. His hospital's commitment to service and his success in coordinating community, social, and health efforts helped Mt. Zion win the 1990 Foster G. McGaw Prize. The award is given by the Baxter Foundation and the AHA.
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Hospitals face a loaded issue: Should their security officers carry guns? Hospitals in high-crime areas say armed guards are needed to curb increasing violence within their walls. Unfortunately, gun-toting guards are expensive and may expose a hospital to liability.
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Declines in government spending on health care have hit low-income Americans especially hard. Increased spending would have a positive effect on the nation's health, say hospital executives. In fact, funding primary care for the medically indigent may save money in the long run.
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Hospital CEOs don't want to see Medicare capital reimbursement fall victim to budget politics. Yet, that's likely to happen if the Health Care Financing Administration folds capital reimbursement into the prospective pricing system (PPS), CEOs say. Moreover, the majority of CEOs say that no fair method of including capital payments in PPS rates can be developed.
Some starting similarities lie behind the recent defaults on $122 million in bonds by four hospitals that were rated by Standard & Poor's (S&P). These hospitals vary widely in terms of bed size and geographic location. However, S&P officials were interested to learn what traits these hospitals shared and analyzed their performance indicators and operations over the past decade.
Are hospitals facing a capital crisis? Wall Street is taking a long, hard look at hospitals' bottom lines--and many analysts don't like what they see. Hospitals' increasing reliance on long-term debt, lower debt-service coverage ratios, and weakening performance indicators all signal a potentially volatile situation for some sectors of the field. Which hospitals are at risk? Experts point to hospitals in Southern California and New York. But others say that hospitals in moderate-size cities with 250 beds and $40 million or more in long-term debt are vulnerable. However, 40 percent of the 600 CEOs who responded to our Hamilton/KSA survey agree that the continued erosion of reimbursement will require a government bailout similar to the savings and loan industry. "A great deal depends on public policy," says Darrel Brownell, executive vice-president and chief financial officer, Memorial Health Services, a two-hospital system based in Long Beach, CA. "The government has the ability to maintain the industry in a stable condition, or it has the ability to force it into a bailout situation."