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Hospitals are low margin/break even because they choose to be - but that's another topic. >IT security doesn't really produce any revenue. Hospitals (and the
by mynameismonkey 11y ago
Hospitals are low margin/break even because they choose to be - but that's another topic.
>IT security doesn't really produce any revenue.
Hospitals (and the health care industry at large) has been drowning in billions-with-a-B federal and state dollars since ARRA. All in the name of "meaningful use" of health information technology. HIT is very much a revenue model for hospitals.
http://healthaffairs.org/blog/2015/03/04/where-is-hitechs-35-billion-dollar-investment-going/ http://healthaffairs.org/blog/2015/03/04/where-is-hitechs-35...
https://www.health.ny.gov/technology/efficiency_and_affordability_law/ https://www.health.ny.gov/technology/efficiency_and_affordab...
http://www.hrsa.gov/ruralhealth/resources/healthit/ http://www.hrsa.gov/ruralhealth/resources/healthit/
http://www.ehrinstitute.org/articles.lib/items/Grants-for-EHR-Imple http://www.ehrinstitute.org/articles.lib/items/Grants-for-EH...
http://calhipso.org/news-and-updates/more-than-1-2-million-in-affordable-care-act-funds-granted-to-calhipso-partners/ http://calhipso.org/news-and-updates/more-than-1-2-million-i...
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* re: operating margins TIME magazine puts margins at an average operating margin of not-for-profit hospitals is 11.7 percent.
According to the AHA Annual Survey, the average operating margin of all hospitals was 5.5 percent in 2011.
So, the industry themselves declare 5.5% margin for non-profit hospitals, a healthy margin for any non-profit entity.
- et2o 11y agoMeaningful use for EHR is completely different from IT security practices. Additionally, payments for implementing new EHR systems are declining to zero; it was a temporary measure. I think you don't really understand what is implied by "meaningful use" measures. It's also pretty misleading to use hospital payment data from 2011, pre-ACA, as reimbursement structure has changed massively in just a few years, massively altering hospital financial models. I think both of my points stand.
- dragonwriter 11y ago> Hospitals (and the health care industry at large) has been drowning in billions-with-a-B federal and state dollars since ARRA. For the US Healthcare industry, billions-with-a-b (for the period since ARRA in 2009) in public funds isn't enough money to drown in. Its not even enough money to get noticeably damp -- its a $3.8 Trillion (annually) industry (something like, IIRC, 40% of which is public funds, so its not even all that big of a delta in public funds.)