Our study reveals how middle market healthcare executives view the state of their industry, as well as the opportunities and challenges they expect to face in the coming year
NEW YORK--(BUSINESS WIRE)--Middle market healthcare executives are optimistic for 2015 with 71% indicating that they expect their revenues to increase this year and two-thirds (66%) anticipating an increase in volume growth. These are some of the findings found in an exclusive study, “2015 Middle Market Healthcare Outlook” (cit.com/healthcareoutlook), released today by CIT Group Inc.. (NYSE:CIT) cit.com, a leading provider of commercial lending and leasing services. The study was conducted online by the Harris Poll among more than 150 middle market healthcare executives.
“Our study reveals how middle market healthcare executives view the state of their industry, as well as the opportunities and challenges they expect to face in the coming year,” said William Douglass, Group Head and Managing Director of CIT Corporate Finance, Healthcare. “Executives are optimistic, and while they continue to confront new challenges, they believe 2015 will be a year for growth.”
Key Findings from the Study:
- M&A Expected to Increase: More than half (56%) of executives expect M&A activity to increase over the next twelve months. They believe this M&A activity will be driven by strategy (61%), rather than by purchase price multiples/valuation (39%). They agree that M&A has helped keep revenue up (83%), removes competition (83%) and allows for efficiencies to be realized (76%).
- Consumers Cannot Bear Higher Healthcare Costs: Nearly 7 in 10 (69%) executives believe healthcare costs are too high and 89% agree that consumers cannot endure any higher costs to healthcare than they are facing now. Healthcare executives see insurance companies (59%), healthcare providers (51%) and the federal government (44%) as being primarily responsible for bringing down healthcare costs. However, the majority of executives (64%) agree that the quality of care will suffer if the cost of healthcare declines.
- Government Regulations Have Positive Impact: Nearly 6 in 10 (59%) executives believe that regulations have had a positive impact on their companies’ revenues and growth. Overall, more than half (52%) believe that the level of government regulations on their sector is just right.
- Affordable Care Act (ACA) Future Uncertain: More than one in four (27%) support full repeal of the ACA and over one in three (35%) believe that the law will be repealed. However, the majority of executives (59%) would support some modifications to the law while keeping the basic framework intact. Nearly three-fourths (73%) believe the ACA is having a positive impact on access to healthcare.
- Technology Providing Better Quality Care: There is consensus among executives that technology is helping to provide better quality care (93%), including convenience for consumers (91%), and 73% agree that technological advances in their respective sector are helping to bring costs down for consumers.
- Consumers Need To Assume More Individual Responsibility: Ninety-four percent of healthcare executives agree that consumers need to be more involved in their healthcare decisions. However, more than 8 in 10 executives (81%) agree that the proliferation of healthcare information available to consumers is creating issues for the industry. When making decisions about healthcare, executives believe that most/all consumers are driven by affordability (86%), high quality care (80%), convenience (80%) and access (78%).
Complimentary copies of the study can be downloaded at cit.com/healthcareoutlook.
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About the Study
The study was commissioned by CIT and conducted online by Harris Poll between February 25 and March 10, 2015 among 155 middle market healthcare executives at companies with revenue between $25 million and $1 billion. Industries within the healthcare sector include skilled nursing, biotech, pharmaceuticals, hospitals/medical centers, physician services, private practice, healthcare technology, medical devices/supplies, other inpatient hospitals, dialysis, home health and hospice, and other healthcare-focused industries.
Founded in 1908, CIT (NYSE: CIT) is a financial holding company with more than $35 billion in financing and leasing assets. It provides financing, leasing and advisory services to its clients and their customers across more than 30 industries. CIT maintains leadership positions in middle market lending, factoring, retail and equipment finance, as well as aerospace, equipment and rail leasing. CIT’s U.S. bank subsidiary CIT Bank (Member FDIC), BankOnCIT.com, offers a variety of savings options designed to help customers achieve their financial goals. cit.com
Matt Klein, 973-597-2020
Vice President, Media Relations