By Nathaniel Luce
Larry Van Horn, Associate Professor of Management (Economics) and Executive Director of Health Affairs
In response to the Wall Street Journal’s April 23 article “U.S. Hospital Profits Fall as Labor Costs Grow and Patient Mix Shifts“
Professor Larry Van Horn
This article reflects the reality facing hospitals as patients choose alternative lower-cost sites of care. Compounding this challenge for hospitals is the increasing percentage of hospital bad debt that stems not from the uninsured, but rather from patients who do not pay their own portion of the bill. Combined with existing excess capacity in the hospital market, their future will be challenging.
Healthcare consumption mirrors the trend in all consumer consumption with a preference for the home. Consumers of today focus on ease of access and price. Hospitals are disadvantaged in such comparison. Much of what has traditionally been delivered in an inpatient hospital setting is being or will be delivered elsewhere. Ambulatory surgery, urgent care centers, home health, retail medicine, hospital at home, telemedicine, and direct primary care are all examples of growing delivery models. The disruption in demand flows in healthcare creates many new and exciting opportunities for healthcare students. They need to consider the landscape broadly.
Want to learn more about healthcare opportunities at Vanderbilt Business?
Learn about healthcare professionals in our Executive MBA program here.
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