Kurt Salmon Associates

The 2020 Hospital®

Over the coming 20 years, hospital redevelopment in North America will be driven by a tightening reimbursement environment, technology advances, and growing consumerism. While unique to North America in many ways, the resulting facility planning concepts will nonetheless have broad applicability to any worldwide market characterized by the needs for more high-technology applications in a consumer-friendly and healing environment.

KSA expects hospitals to evolve along five key dimensions.

  1. Enhanced focus on absolute core competencies. Most hospitals will focus on the provision of care and little else. While U.S. hospitals have traditionally maintained control over all functions, tight margins, coupled with increased service expectations, will lead to outsourcing of many hospitality, logistics and information services.
  2. Increasingly bimodal clinical operations. The future hospital must accommodate more high-acuity critical care beds and more sophisticated ambulatory capabilities. The middle band of inpatient acuity and the simpler ambulatory cases will move to alternative and lower-cost settings.
  3. Acute care beds and complex diagnostic and treatment (D&T). These technologies will consolidate as the primary purview of hospitals. Well-financed physician groups will continue ownership of selective ambulatory D&T along a moving boundary line defined by shifting reimbursement incentives.
  4. Greater integration with retail distribution channels. Enhanced ambulatory technologies and growth in consumerism will lead to new distribution channels through the retail sector. Large pharmacies, fitness chains, etc. - with national brand and consumer infrastructure - will enter the health care service arena.
  5. Change in capitalization and asset ownership. Hospitals will seek more and different sources of capital to sustain redevelopment. Building ownership will become less essential to the provider’s core competency of delivering health care.

Factors to consider for future planning today:

On the front, we foresee:

Kurt Salmon Associates specialises in providing management advisory services in strategy, facility planning, and information technology to hospitals and physician groups.

Contact Information:
Tom DeChant
Principal
Kurt Salmon Associates
2870 University Avenue, Suite 108
Madison, WI 53705

Tel: +1 608.238.2999
Fax: +1 608.238.2482
tadechant@kurtsalmonassociates.com
www.kurtsalmon.com

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