Tuesday, March 5, 2013

Sequestration: 6 Ways It Hurts Hospitals

From Becker's Hospital Review - "6 Key Observations on Sequestration and Hospitals" notes that hospitals will need to refine purchasing, cost cutting mechanisms.   The main theme: sequestration proves that hospitals need to engage in cost cutting that they probably need to do for strategic reasons anyway.

Most important we think is this note:
"Hospitals and health systems should be aware that healthcare spending cuts are in the government's budget crosshairs."
Indeed.  Need to cut domestic spending?  Go to healthcare.  When cuts are needed at the federal level, legislators find healthcare too large a target not to cut, it seems.   Kalorama's key takeaway would be that hospitals are the largest medical device purchasers, thus anything that affects hospitals will wind its way down to the already-suffering device market, and despite growth trends globally, the device market in the US may suffer in terms of growth.    Kalorama comments about the global device market in its reportThe Global Market for Medical Devices