The results showed the sector is facing multiple challenges from insurance to increased M&A activity to distribution channels. At the top of the list though was the transition to new digital infrastructure.
Other findings include:
- M&A activity and price increases are two methods providers will employ to drive revenues in 2019, but restricted access to capital is likely forcing many to adopt more risk-averse growth strategies.
- Nearly 70% of respondents said less than half of healthcare services companies are operating with sophisticated, integrated IT systems.
- About 65% of those polled felt that while they recognize the need to upgrade technology infrastructure for the digital age, costly and inefficient fixes pose a major threat. There is significant concern that overspending on upgrades is rampant which ultimately affects billing and revenue cycles.
- While geographic expansion and the opening of new facilities are generally not seen as potential revenue drivers for healthcare services in 2019, respondents noted outpatient surgical centers and walk-in health clinics are likely to be exceptions that are expected to continue to expand.
- Mark Claster, Partner
- Marc Pfefferle, Partner
- Keith Daniels, Partner
- Jonathan Killion, Managing Director
- Press Release – Healthcare Services Companies Continue to Struggle With A Myriad Of Challenges: Reimbursement, Staffing and Technology Implementation Top of Mind
- ABL Advisor – Restricted Access to Capital Limiting Growth of Healthcare Services Companies, Survey Finds
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