Current Industry Trends Affect Hospital Valuations

The difficult current economic climate is riddled with change and uncertainty, and the hospital industry is not immune to the effects. In fact hospitals face an unprecedented series of challenges, including poor economic conditions, increasing competition, and greater reporting requirements. On top of these issues, the healthcare reform law looms, with a great deal of perplexity regarding its ultimate effect on hospital operations. This environment makes it difficult for an appraiser to assess the value of a hospital. Before confronting these uncertainties, the appraiser must gain an understanding of the hospital industry as a whole including its main value drivers.