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June 24, 2008

The economy's impact in Healthcare

Analysis of: Health Care in a Lousy Economy | www.hhnmag.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Shawn Burgess, Vice President & Chief Information OfficerShawn Burgess
Vice President & Chief Information Officer, Abrazo Health System
Implications: Typically the macro economy does not have immediate effect to the healthcare market.  As the current US economy struggles from the rising cost of fuel and burst of the housing and mortgage bubble the effect is beginning to be realized in various areas that impact the healthcare market.

Analysis: It is inevitable the rising cost of fuel has a direct hit to the cost of supplies that are staples in american hospitals; medical supplies, food, energy, etc.
These rising costs do not have an impact on patient or procedural volumes or reimbursement, but definitely operational costs which feed the capital budget.  The cascade effect of the economic recession does impact employer healthcare benefit plans and ultimately the level of care patients seek; leaving some to not seek treatment, and/or leave hospital bills unpaid (or seek charity care).

Other Analyses of the Same Source Article:
Jeff is in accounting not a healthcare provider.
June 23, 2008, Author: GLG Expert Contributor

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