IT, Other Investments Causing Weakening Financials for Hospitals | Healthcare Informatics Magazine | Health IT | Information Technology Skip to content Skip to navigation

IT, Other Investments Causing Weakening Financials for Hospitals

August 27, 2013
by Gabriel Perna
| Reprints

Thanks to information technology (IT) and other investments, hospitals are incurring higher expenses, and for the first time in three years showing weakening financial performance, a recent report from Moody’s Investors Service found.

Moody’s found that in hospitals, expense growth surpassed revenue growth for the first time since fiscal 2008. Median total operating revenue growth rate declined to 5.2 percent in fiscal 2012 from an improved 5.4 percent in fiscal 2011. This is because of a higher rate of investment.

“Many hospitals incurred higher expenses associated with information technology, physician alignment, supplies and pharmaceuticals and pension. Some also had higher consulting, legal and other fees associated with mergers and acquisitions, debt restructurings and performance improvement initiatives," Moody's assistant vice president and analyst Deepa Patel, said in a statement.

Topics

News

NewYork-Presbyterian, Walgreens Partner on Telemedicine Initiative

NewYork-Presbyterian and Walgreens are collaborating to bring expanded access to NewYork-Presbyterian’s healthcare through new telemedicine services, the two organizations announced this week.

ONC Releases Patient Demographic Data Quality Framework

The Office of the National Coordinator for Health IT (ONC) developed a framework to help health systems, large practices, health information exchanges and payers to improve their patient demographic data quality.

AMIA, Pew Urge Congress to Ensure ONC has Funding to Implement Cures Provisions

The Pew Charitable Trusts and the American Medical Informatics Association (AMIA) have sent a letter to congressional appropriators urging them to ensure that ONC has adequate funding to implement certain 21st Century Cures Act provisions.

Former Michigan Governor to Serve as Chair of DRIVE Health

Former Michigan Governor John Engler will serve as chair of the DRIVE Health Initiative, a campaign aimed at accelerating the U.S. health system's transition to value-based care.

NJ Medical Group Launches Statewide HIE, OneHealth New Jersey

The Medical Society of New Jersey (MSNJ) recently launched OneHealth New Jersey, a statewide health information exchange (HIE) that is now live.

Survey: 70% of Providers Using Off-Premises Computing for Some Applications

A survey conducted by KLAS Research found that 70 percent of healthcare organizations have moved at least some applications or IT infrastructure off-premises.