Hospital Recovery Appears V-shaped

There have been some positive articles in the last couple of weeks suggesting that the financial health of hospitals is improving.

Health Leaders Media is reporting that hospitals are not only recovering but showing signs a ‘V’ shaped recovery (one that both declines and recovers quickly).

“There has been an improvement at the hospital level that has allowed them [hospitals] to ease up on the cost containments,” he says. “To the extent that they can, hospitals do not want to get caught not operating at appropriate levels in terms of staffing because that is going to hurt them in the long run. Job growth may not come back to historical levels, but over the next 12 months it will definitely be up from what we have seen through much of this year.”

Of course, the only thing to be leery of when predicting ‘V’ shaped recoveries is that the prediction is too early and in fact, what we’re seeing is a ‘W’ (an economy that declines, recovers and declines again). There are several predictions being thrown around in regard to the healthcare staffing industry and the 2010 economic outlook.

Hopefully this won’t be the case. Reading about specific regions, such as Texas, also seeing signs of hospital recovery is also good news.

The percentage of hospital revenue left over after regular business expenses increased from zero in the third quarter of 2008 to 4 percent in the second quarter this year. In Texas, the proportion increased from 6 percent to 8 percent.


Only time will tell. But let’s hope for the best.

cforms contact form by delicious:days

Join The Conversation