Eight in 10Â financial chiefs at health care organizations surveyed by audit, tax and advisoryÂ firm Grant Thornton expect the worstÂ recession since the Great Depression to keep its hold on the U.S. economyÂ through theÂ end of the year.
Sixty-percent of the health care CFOs expect to do lessÂ business travel this year to cut costs, the survey found. However, financial leaders at health care organizations are less likely to cut pay raises — only 43 percentÂ — compared with 65 percent of CFOs at a broad range of companies nationwide, Grant Thornton found.Â
“Of all the industries health care appears to have bucked the trend of cutting raises this year, asÂ a way to cut costs,” Anne McGeorge, managing partner of Grant Thornton’s health care practice, said in her firm’s release of health care survey results.
Health care CFOs inÂ health care represent the only industry group in which less than 50 percent of executives said they wouldÂ cut pay raises this year to save money. At the high end of the industry scale, 74 percent of finance chiefs at real estate companies said they would cut raises, followed by 71 percent of financial leaders at manufacturers and 70 percent of those at technology companies.
The health care survey findings come with a serious disclaimer: Grant Thornton surveyed only 37 chief financial officers and controllers at both public and private companies in the U.S. health care industry in late March and early April.
The tinyÂ number ofÂ respondentsÂ leads toÂ questions about the meaningfulness ofÂ the surveyÂ results.Â But at five years old, Grant Thornton said its Survey of Senior Financial Officials is the longest-running survey of its kind.
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- Need for cost data slows health-care overhaul (Wall Street Journal; online subscription required)
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- ‘Mini-COBRA’ could save health benefits for many (Philadelphia Inquirer)
- Tenet Healthcare swings to 1Q profit (Google News/Associated Press)
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- Biotech business model ‘unsustainable’ in financial crisis, E&Y saysÂ (FierceBiotech)
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- Is the recession stifling innovation? (WANE-TV/Associated Press)
Â “Recession Lane” photograph by flickr user Zen Traveler.