2025 Hospital Outlook Survey

Summary of Key Insights from the 2025 Hospital Outlook Survey Industry Overview - The survey focuses on the US healthcare industry, specifically hospital executives' expectations regarding utilization, capital spending, and procedure dynamics for 2025 [2][8]. Core Insights Utilization Trends - Overall Utilization Growth: 55% of hospital executives expect utilization growth in 2025 to be above 2024 levels, a decrease from 60% in the previous year [8][17]. - Outpatient vs. Inpatient: 64% anticipate outpatient utilization growth above 2024 levels, while only 34% expect similar growth for inpatient services [8][17]. - Elective Procedures: 64% expect elective procedures to grow above or in line with 2024 levels, indicating a recovery potential despite macroeconomic challenges [9][17]. Capital Expenditures (CapEx) - CapEx Growth Expectations: Hospital capital spending is projected to increase by 3.5% in 2025, slightly down from 4.0% in 2024. This reflects a stable environment for capital equipment purchases [10][40]. - Spending Categories: Hospitals are most likely to increase spending on CT and healthcare IT, with 73% of respondents indicating a willingness to invest in IT [10][47]. - Purchasing Timelines: There is a noted uncertainty regarding purchases within the next 12 months, with expectations for orthopedic robotics purchases declining from 64% to 48% [12][50]. IT Investments - Growth in IT Spending: IT investments are expected to grow by 5.5% in 2025, up from 4.5% in 2024. Cybersecurity is the top priority for 59% of respondents, followed by electronic health records (53%) and AI (43%) [58][59]. - Challenges: Despite the focus on cybersecurity, staffing and labor retention are viewed as more significant challenges for hospitals [61]. Patient Acuity and Payor Mix - Patient Mix Stability: The mix of patient acuity is expected to remain stable, with moderate-risk patients making up 27% and complex/high-risk patients 35% of the total [25][26]. - Payor Mix: The payor mix is projected to remain consistent, with 56% from Medicare/Medicaid and 38% from commercial insurers [25][28]. Value-Based Care (VBC) - Interest in VBC: While nearly all hospitals have some revenue tied to VBC arrangements, the average share has decreased from 26% to 22%. Interest in establishing VBC partnerships is also declining [30][34]. Additional Insights - Surgical Robotics: Hospitals continue to invest in surgical robotics, particularly in soft-tissue robotics from Intuitive Surgical, despite a slight decline in orthopedic robotics purchasing expectations [12][40]. - Economic Pressures: Executives express concerns about inflation, labor costs, and reimbursement pressures impacting capital spending and procedure volumes [41][52]. This comprehensive overview highlights the evolving landscape of the healthcare industry as hospitals navigate utilization trends, capital expenditures, and the integration of technology in patient care.