Assessing healthcare market trends and capital needs: 1996-2000.
An analysis of recent data suggests several significant trends for the next five years, including a continuation of market-based reform, increases in managed care penetration, growth of Medicare and Medicaid health maintenance organizations, and erosion of hospital profits. A common response to these trends is to create integrated delivery systems, which can require significant capital investment. The wisest capital investment strategy may be to avoid asset-based integration in favor of "virtual integration," which emphasizes coordination through patient-management agreements, provider incentives, and information systems, rather than investment in large number of facilities.
Health Forecasting Group, Santa Clarita, CA, USA.
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D002201:Capital Expenditures / Q000639:trends; D002204:Capitation Fee; D003625:Data Collection; D004465:Economic Competition / Q000639:trends; D005544:Forecasting; D006273:Health Facility Merger / Q000639:trends; D006754:Hospital Restructuring / Q000191:economics / Q000639:trends*; D006760:Hospitalization / Q000706:statistics & numerical data; D006777:Hospitals, Proprietary / Q000639:trends; D007182:Income / Q000639:trends; D007250:Inflation, Economic / Q000639:trends; D008329:Managed Care Programs / Q000191:economics / Q000458:organization & administration* / Q000706:statistics & numerical data; D009096:Multi-Institutional Systems / Q000639:trends; D018511:Systems Integration; D014481:United States