Texas Health Resources - The Business of Healthcare

The Business of Health Care Report
Futurescan 2002 - August 2002

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I'm Doug Hawthorne, President and CEO of Texas Health Resources, with "The Business of Health Care Report" on News Radio 1080 KRLD. On today's program, we'll look at the major trends driving today's U.S. health care delivery system.

A new survey suggests American health care is poised for growth as volumes and revenues rise in the next two to five years. The expanding health care market will be powered by population expansion, the aging of the baby boom generation, and new technology.

In Futurescan 2002: A Forecast of Health Care Trends 2002-2006, author Russell Coile, Jr. predicts rising health care expenditures signaling a return of medical inflation, with double-digit premium increases for employers, more cost-shifting to consumers and the threat of additional government regulation.

The report highlights several trends impacting the health care environment:

A surge in consumer demand creating capacity shortages in many hospitals for critical care, surgery and emergency rooms.

After 10 years of downsizing in the 1990s, hospitals are investing in new building plans, after reduced reimbursements eliminated the options for building and upgrading in the 90's.

Labor issues will present difficult challenges, led by workforce shortages, unionization and low employee morale in some hospitals.

Competition is shifting from managed care to quality. Employers are forcing attention on improving patient safety and reducing medical errors. Led by the Leapfrog Group, dozens of Fortune 500 companies will steer 25 million covered individuals to hospitals investing in computerization, employing critical care physicians, and meeting volume benchmarks for specialized services.

Finally, the attacks of September 11 have added a new threat of domestic terrorism to the Futurescan five-year outlook. Hospitals are moving quickly to upgrade their disaster plans to cope with the potential of mass casualties from attacks using biological, chemical, or nuclear weapons.

For Texas Health Resources and its family of hospitals - Harris Methodist Hospitals, Presbyterian Healthcare System and Arlington Memorial Hospital - I'm CEO Doug Hawthorne with "The Business of Health Care Report" on NewsRadio 1080 KRLD.

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