Hospital Economics and Healthcare Reform

Hospitals constitute one of the core anchors of the U.S. healthcare value chain. Nearly half of the $2.7 trillion spent on healthcare are spent in or around the hospital in inpatient and outpatient settings, and for ancillary services associated with hospital services. One of the showcase elements of the Affordable Care Act (ACA) is the concept of the accountable care organization (ACO), and hospitals – with their organizational structures, capitalization and resources – have been a central organizing agent in the formation of these constructs. Outcomes that result in instability or structural imbalance for hospitals will be bad for the whole sector; on the other hand, solutions and strategies that help hospitals attain financial and structural sustainability in light of these headwinds will find a willing and growing market.