AskTheExperts

How will healthcare look beginning January 20, 2009 with either new administration?

Both candidates, and their parties, have different and divergent views for the reshaping of healthcare. Simply stated, one is for big government and one is for market forces. Sadly, there is no magic bullet and the only silver lining in the offing will be hard-won, bi-partisan support for a consensus reform effort that Americans can get behind. Medicare funding is lagging as more seniors qualify for coverage every day. The economic downturn will likely exacerbate the state’s support for Medicaid programs. And with businesses taking on water and feeling the effects of the rising tide of health insurance double-digit increases, the cost-shifting to already stressed employee earnings will continue to hurt any economic stimulus package. Both leaders have healthcare in the their respective top five platform messages, unfortunately, the war and the economy are number one and two for each and these may exhaust the resources available and diminish other reform efforts.

The economy in the Fall of 2008, what does that mean for health care?

Recent studies touted that one-third of hospitals are in the red, one-third are living off investment income, and one-third of facilities are in the black. The recent nearly 800-point drop on Wall Street (followed by a 500-point rebound the very next day) certainly highlights the precarious nature of the dependency on “bottom-bottom line” earnings for future growth, or at least continued survival.  This certainly is not the “Go Go 80s”. Organizations now need to look to their Governance for leadership on their Investment Committee (or similar) to right their financial investment strategies and implement new and better short-term tactics. More than ever, the need to control the controllable, and aggressively monitor day-to-day operations should be top of mind with C-Suite executives and be the priority focus for front line supervisors.