Presentations How Cost Effective Are Spine Interventions? | Page 14

Hospitals just want to avoid
losing money on surgery --
today
´ According to the Harvard Business Review, big-name hospitals
reported significant declines and, in some cases, net operating
losses in FY 2016.
´ Partners HealthCare, New England’s largest hospital network,
lost $108 million; the Cleveland Clinic witnessed a 71% decline
in operating income; and MD Anderson, the nation’s largest
cancer center, dropped $266 million.
´ “Our expenses continue to rise, while constraints by
government and payers are keeping our revenues flat.”
´ Flat Medicare payments. Changing payer mix to lower-priced
patients. Profitable services are moving to outpatient venues,
including physician-owned “surgicenters” and diagnostic
facilities.
´ Hospitals remain one of the most unionized industries
´ Drugs, equipment and implant prices are rising at three times
the rate of healthcare inflation.