The readers always write…
“What are you talking about? There is no threat of an economic bubble in the healthcare industry. We are in the middle of a Pandemic!”
OK, here is the rundown:
- Health system mergers have driven up overhead. Businesses cannot keep funding higher healthcare costs and remain competitive globally.
- Hospital balance sheets are leveraged. Several health systems recently were unable to refinance their debt with tax-exempt bonds
- Value-based reimbursement will push more inpatients to outpatient or home care settings. Expensive hospital beds will go idle.
- The hospital inpatient component of Medicare, Part A, will be insolvent by 2024, according to the Trustees.
- To fix this problem taxes will have to be increased and reimbursements to hospitals cut. Fewer inpatients, lower reimbursement, that is not a good combination.
If you are in healthcare and do not have a career plan for this storm, now is the time to think about your future.
If you would like a free consult, visit https://calendly.com/john-1552/you-have-questions-we-have-answers-free-telephone-consult-regarding-your-career. We are here to help.