Not-for-profit Hospitals Invest in Health IT

Health IT systems sit atop the capital-spending priorities of not-for-profit hospitals, according to a new report from Fitch Ratings.

In its May 17 report titled “Capital Expenditure Trends Among Nonprofit Hospitals,” Fitch analysts say health IT investment was considered more important than physician-alignment initiatives, and investments in outpatient facilities, clinical-access points and inpatient capacity, in that order. Hospital leaders considered all five surveyed areas to be of at least moderate importance, according to the report.

The five areas were ranked on a score of one to five, with one being the most important. Health IT investment received an average rating of 1.7, followed by 2.7 for physician alignment and 2.9 for outpatient capacity. Inpatient-facility investment ranked at the bottom at 3.8.

“Expanded IT capabilities are a key cornerstone of health-care reform and the future of clinical operations,” the analysts said in the report. “IT is expected to help hospitals decrease costs and increase the quality of care through the development of clinical protocols that will allow for a decrease in the variance of clinical practices and supplies.

“IT will also help hospitals adjust to evolving reimbursement methodologies such as pay for performance, quality incentives, and bundled payments," the report said. "Additionally, advanced IT systems will enhance physician integration efforts via improved care coordination both inside and outside of acute-care settings.”