The readers always write…

“I disagree!

“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.

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