Hospitals and other healthcare firms are feeling more confident about their economic stability, according to a recent survey from GE Capital.
The survey, which focused on c-suite executive as mid market companies ranging from $10 million to $1 billion in assets, found that “healthcare firms continue to enjoy improving financial performance and increasing employment.”
Much of the confidence is rooted in local economies versus the national economy. More than two-thirds of respondents, or 67 percent, are “extremely confident” or “somewhat confident” about local economic activity, according to the survey. Another 68 percent reported improved financial performance over the last six months.
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Employment has continued to improve at the majority of healthcare firms, according to the survey, with 55 percent of respondents indicating increased employment over the past six months. That’s up up from 45 percent in the last wave of the GE Capital survey, conducted in March. Additionally, 47 percent expect improved employment in the sector over the next 12 months, according to the survey.
Yet reimbursement rates are expected to remain flat, putting pressure on margins across the industry. Respondents cited the cost of healthcare and uncertainty of government actions as primary concerns, followed by ensuring compliance with industry regulations.
Capital expenditures over the next six to 12 months will be spent on new equipment for expansion, or to replace current equipment and the maintenance of infrastructure, the survey found.
The survey findings, conducted by GE’s healthcare unit, are based on 110 respondents in the healthcare industry, including services and products firms.
