Hospital executives more often expect to make investments in technology in the next two years than to invest in service or building expansions or to make acquisitions, according to a survey of 464 hospital executives. The survey, conducted by Prince Market Research for the law firm Waller Lansden Dortch & Davis, Nashville, found that 79% of not-for-profit or public hospital executives surveyed expect to make IT investments in the next two years, and 69% of for-profit hospital executives surveyed expect to do the same. About half of each group expects to make investments to offer new services. Half of the not-for-profits and public hospitals surveyed expect to expand their facilities, while only about a third of for-profits expect to do so. Investment in acquisitions is expected by only 13% of the for-profits surveyed and 9% of the not-for-profits and public facilities.
Not-for-profit and public hospital executives who were surveyed expect to fund these investments primarily in three ways: current reserves, tax-exempt bonds and grants from foundations. For-profit executives said that financing from their parent company was their most likely source of capital.
Waller Lansden said that 86% of the respondents work for not-for-profits or public hospitals and 14% work for for-profits. A little more than half work at standalone hospitals, about a third work in a hospital in a multihospital system and 13% work at the corporate level of a system. About three-fifths work in rural hospitals, and a fifth each in suburban and urban locations.
The survey was sent to 4,085 hospital and health system chief executive officers, and 464 completed surveys were returned, a response rate of 11.3%. The margin of error was 4.6%. The survey was completed in June, July and August. -- by Vince Galloro