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.



Loma Linda University Medical Center Gets HIMSS Stage 7 Designation

Loma Linda University (LLU) Medical Center and other patient care facilities linked to the health system have achieved Stage 7 designation on HIMSS Analytics’ inpatient Electronic Medical Record Adoption Model (EMRAM).

HHS OIG Report Cites Concerns with MACRA Implementation

The U.S. Department of Health and Human Services (HHS) Office of the Inspector General issued a report of its review of the Centers for Medicare & Medicaid Services’ (CMS) management of the Quality Payment Program and cited specific concerns regarding the need for more specialized technical assistance for clinicians and program integrity efforts.

Cerner Files Protest over $62M EHR Contract Awarded to Epic

Cerner Corp. has filed a protest against rival EHR vendor Epic Systems following an “unfair bidding process and a possible conflict of interest” for a recent IT implementation contract awarded by the University of Illinois (UI) medical center.

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.