Industry Analysis & Industry Trends
Hospitals will benefit from increasing demand for healthcare among a growing customer base. Furthermore, healthcare reform will pave the way for growth in revenue as more individuals gain insurance coverage. On the other hand, high labor costs will result from ongoing shortages and reimbursement from Medicaid and Medicare will continue to be strained as the government seeks to finance healthcare reform and states deal with budget deficits, restraining profitability... purchase to read more
Industry Report - Industry Investment Chapter
Capital intensity in the Hospitals industry is medium. The average firm requires about $0.13 worth of capital for every $1.00 of labor. Labor-related costs (including contracted services) are estimated to account for nearly 50.0% of total hospital revenue. Hospitals provide a high level of personal care. The safety and quality of patient care in hospitals is influenced by the size and experience of the physician and nursing work force. Inpatient conditions have deteriorated in some facilities because hospitals have not kept up with the rising demand for nurses. This situation has motivated some state legislatures to enact or consider regulatory measures to assure adequate staffing... purchase to read more