Hospital administrators aren’t holding out much hope for a significant rebound in their budgets this year. But, after a year of fire-and-brimstone projections, that might mark a positive trend.
A survey of 54 hospital administrators conducted by investment bank
Leerink Swann reported 60 percent of respondents saying they expect their hospitals budget to be stable or improve in 2010. (The other 40 percent said they expect further declines.)
In a proverbial silver lining for medical technology companies, the survey indicated that procedure volumes are expected to rise for such high-ticket specialties as orthopedics, general surgery and cardiology.
Although Leerink acknowledged the survey’s limited sample size is limited, the bank suggested that the news is a mixed bag for med-tech companies and their stock prices. That’s because medical device companies can expect pricing pressures to remain, as hospitals guard their bottom lines.
“This survey does not seem to indicate any further deterioration, or a clear rebound,” wrote the survey’s authors. “Still, the basically stable results encourage us that the rebound will occur as the economy and employment recover.”
Highlights of the report include:
- Double-digit percentage increases in hip & knee, spine and general surgery procedures
- Fifty-three percent of respondents said their institution’s highest spending in 2010 would be on healthcare information technology.
- Only 11 percent of respondents said they expected their institution to accelerate capital equipment purchases in the coming year.