"Providers Pinched By Rising Drug Costs, Looming Policy Changes" - Alex Kacik
Not-for-profit and public hospitals are reining back their spending as they cope with rising drug prices and proposed cuts to the 340B program that continue to batter their margins. More than 90 percent of surveyed hospitals said recent drug price increases have had a moderate to severe effect on their ability to manage patient-care costs. Providers said these factors, coupled with looming policy uncertainty, are causing them to cut back capital expenditures that would help them operate more efficiently and effectively. "It's hard to envision the kind of capital expenditures necessary to modernize a lot of aspects of our healthcare system that advantage patients," said Kenneth L. Davis, MD, president and CEO of the Mount Sinai Health System. Even bigger systems in large metro markets are dealing with operating margins that are stretched thin.
- Kenneth L. Davis, MD, President, CEO, Mount Sinai Health System