Middle Market Healthcare Executives Optimistic for 2015
April 15 2015 - 8:30AM
Business Wire
- 71% Believe Revenues Will Increase in
2015
- 56% Expect M&A Activity To Increase
Over The Next 12 Months
- 69% Think Healthcare Costs Are Too High
for Consumers
- 59% Believe Regulations Have Had A
Positive Impact On Revenues And Growth
- 35% Believe The Affordable Care Act
Will Be Repealed
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, President 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.
EDITOR’S NOTE:
CIT thought leadership content can be found at View from the
Middle™ (cit.com/viewfromthemiddle) and our CIT Point of View blog
(cit.com/pov). View our corporate video (cit.com/corporatevideo)
and follow us on Twitter, LinkedIn, YouTube and Facebook. Register
to receive press releases at cit.com/newsalerts.
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.
About CIT
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
CIT MEDIA RELATIONS:C. Curtis Ritter, 973-740-5390Senior
Vice President of Corporate CommunicationsCurt.Ritter@cit.comorMatt
Klein, 973-597-2020Vice President, Media
RelationsMatt.Klein@cit.comorCIT INVESTOR RELATIONS:Barbara
Callahan, 973-740 -5058Senior Vice
PresidentBarbara.Callahan@cit.com
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