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For Immediate Release

Top Hospital CEOs: Reimbursement Cuts and New Payment Models are Greatest Challenges Facing the Industry

Thomson Reuters Polls Top-Performing Hospital CEOs on Keys to Success, Biggest Challenges

Ann Arbor, MI, Sep. 07, 2011 — Reimbursement cuts and new payment models resulting from healthcare reform are the biggest challenges confronting hospitals, according to a survey of top hospital CEOs conducted by Thomson Reuters. The survey asked CEOs of hospitals that won the Thomson Reuters 100 Top Hospitals® award in 2011 to rate the key challenges they face over the next one to three years, the reasons for their success, and the importance of various industry issues. The majority of hospital chiefs said reimbursement cuts and new payment models stemming from healthcare reform are the greatest challenges confronting their organizations in the years ahead. The top five challenges listed by survey respondents all have a connection to healthcare reform — decreased reimbursements, uncertainty about the advent of Accountable Care Organizations, continued cost reductions, changing physician alignment, and quality of care. When asked to rate the factors that have driven their success, hospital CEOs most often cited a sustained focus on quality. Other success drivers cited frequently were strong leadership, developing a culture of excellence, and a strong relationship with medical staff. The survey also asked executives to rank the importance of current topics in order of importance. They listed quality measurement, medical staff alignment, and cost reductions as the top three. These were also the three issues that hospital CEOs felt their organizations have made the most progress on. The survey was conducted by phone from April 5 to May12, 2011. All CEOs interviewed were heads of hospitals that won the Thomson Reuters 100 Top Hospitals award in 2011. The Thomson Reuters 100 Top Hospitals program evaluates performance in 10 areas: mortality; medical complications; patient safety; average patient stay; expenses; profitability; patient satisfaction; adherence to clinical standards of care; post-discharge mortality; and readmission rates for acute myocardial infarction (heart attack), heart failure, and pneumonia. The study has been conducted annually since 1993. For a copy of the report summarizing the survey findings, 100 Top Hospitals CEO Insights, visit 100tophospitals.com.

About Truven Health Analytics, part of the IBM Watson Health Business

Truven Health Analytics®, part of the IBM Watson Health™ business, provides market-leading performance improvement solutions built on data integrity, advanced analytics and domain expertise. For more than 40 years, our insights and solutions have been providing hospitals and clinicians, employers and health plans, state and federal government agencies, life sciences companies and policymakers, the facts they need to make confident decisions that directly affect the health and well-being of people and organizations in the US and around the world. The company was acquired by IBM in 2016 to help form a new business, Watson Health. Watson Health aspires to improve lives and give hope by delivering innovation to address the world’s most pressing health challenges through data and cognitive insights.

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Brian Erni
For Truven Health Analytics
J. Roderick, Inc. Public Relations