Not-for-profit health systems are planning to increase capital spending in the coming years, in part because of improved financial outlooks stemming from the Affordable Care Act (ACA), according to a report from Fitch Ratings.
More on improving hospital finances
Fitch compared health systems' responses from this year's survey to a similar 2012 survey. Researchers found that 53% of respondents to the 2015 survey planned to increase capital spending over the next five years, up from 45% in 2012.
Fitch Director Adam Kates in a release attributed the expected uptick in capital spending to increased certainty regarding the ACA after the recent Supreme Court decisions, "stable operating profitability during implementation of key [ACA] provisions over the past three years, and increasing patient consumerism."
The Fitch report also found that:
- 46% of respondents were planning to refinance this year, down from 55% in 2012;
- 29% planned to issue bonds to fund their capital, down from 39% in 2012; and
- 17% expected capital expenditures to decrease, down from 19% in 2012.
Prioritizing the investment plan for population health management
Explore trends in the top three investment areas for population health management: a flexible care management workforce, analytics to drive value from IT, and a preferred partner network.