Independent Hospitals Eaten by Competition
The competitive driving forces in healthcare are affecting smaller community hospitals. Though some are able to survive, competition effects on pricing and other factors are forcing some facilities to partner with larger hospital organizations.
One particular challenge for independent community institutions is the ability to keep pace with the shift in facilities. Many older hospitals simply don’t have adequate space to house expansion, such as may be required with new radiology equipment. They are even less likely to have available funds to undertake cosmetic renovations to compete with current trends in construction of acute care facilities.
An additional limitation for these independent institutions is less negotiating power with payers and suppliers. They simply do not capture sufficient market share to negotiate the same rates as multi-institution agencies.
Nevertheless, the Washington State Hospital Association noted that of the 96 community hospitals in the state, 60 are independent, according to the Seattle Post-Intelligencer. The future of these, particularly those competing with other facilities, will certainly be influenced by activities of larger multi-player hospital organizations.
Related stories:
- Boston Hospitals Go Green
- New Hospital in Miami-Dade County Opens with Plenty of Features
- Updated Inpatient Facilities in Chicago
- In-Depth Survey Highlights Hospital Building Trends
April 5, 2007 Related topics: General Management & Administration, Industry & Market