DANVERS, MA--(Marketwire - Feb 14, 2013) - HealthLeaders Media, a division of HCPro, Inc., today announced the kickoff of a new relationship with Bank of America Merrill Lynch in which the two companies will collaborate on a series of research projects in 2013 designed to provide healthcare executives with insight into the economics of their industry.
"The four-part series will consist of quarterly 'buzz' surveys on key industry topics, the publication of special Executive Insight reports analyzing the results of the surveys, and executive roundtable discussions with senior finance executives from Bank of America Merrill Lynch and leading provider organizations," said Matthew Cann, vice president of media and analytics at HealthLeaders Media. "We are also launching a dedicated Executive Insight Center microsite on HealthLeadersMedia.com (www.healthleadersmedia.com/eic), featuring an array of custom content and additional expert analysis."
The first project, focused on the changing structures of capital finance, made its debut this week. The buzz survey conducted as part of the project found that while the bond market is still, by a slim margin, the most popular funding source preferred by healthcare executives, only one out of three survey respondents intends to use bonds as a primary source of capital in the next two to three years. In fact, 44% don't intend to tap bonds at all (climbing to 50% among C-level executives), while roughly 30% intend to rely on investment income as a primary source of funding for capital projects.
"The results of our proprietary survey of U.S. healthcare executives show that healthcare reform and the threat of sequestration of federal funding remain significant drivers of capital investment as providers prepare for their impact," said John Hesselmann, Specialized Industries executive at Bank of America Merrill Lynch. Part of the company's Global Commercial Banking business, Specialized Industries provides healthcare clients with such solutions as core credit and treasury management, and also helps provide leasing, retirement capabilities and other capital-raising products.
Hesselmann noted that survey respondents by an overwhelming margin said changes to healthcare reform laws were the biggest drivers of capital investments, with 65% saying they are major influence and another 23% citing them as a minor influence.
The buzz survey also found that healthcare organizations are prioritizing by investing more in information systems and IT infrastructure, while cutting back in some cases on things like new facilities. Regardless of which specific areas are receiving the greatest allocations, the survey found that nearly all healthcare organizations are making some level of capital commitments, with just 6% of surveyed executives planning no capital investment at all in the next 12-18 months.
"We are primarily investing in three areas: health information technology; facility upgrades; and mergers, acquisitions, and other partnerships," said Robert S. Shapiro, executive vice president and CFO at North Shore-Long Island Jewish Health System in Manhasset, N.Y. "We'd be doing these even if there were no major changes coming in how care is delivered and paid for, except that we are putting more emphasis on acquisitions."
The second research project in the collaboration between HealthLeaders Media and Bank of America Merrill Lynch is scheduled for an April launch and will focus on capital finance and industry consolidation.
HealthLeaders Media, a division of HCPro, Inc., is a leading multi-platform media company dedicated to meeting the business information needs of healthcare executives and professionals. As an integrated media company, HealthLeaders Media includes HealthLeaders magazine, HealthLeadersMedia.com, the HealthLeaders Media Intelligence Unit, HealthLeaders Media Rounds events, HealthLeaders Media Breakthroughs reports, and California HealthFax. All these platforms may be found online at www.healthleadersmedia.com.
Bank of America
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