87% of small U.S. hospitals can’t afford tech — Black Book survey
WASHINGTON, UNITED STATES — A striking 87% of small American hospitals with less than 50 beds lack the funds to invest in updated technology, according to a 2024 first-quarter study by Black Book Research.
The report, which surveyed 1,657 hospital executives, highlights a widening “digital divide” that prevents smaller, rural healthcare providers from accessing the same level of care as larger hospitals.
Among the respondents were the attendees of the recently held American Hospital Association Rural Healthcare Leadership Conference and the members of the Federation of American Hospitals, the National Rural Health Association, and the Alliance for Rural Hospital Access.
Black Book noted that outsourcing is one of the ways these hospitals can fill in their gaps to provide quality patient care.
“In successfully navigating the critical access and rural healthcare landscape, flexibility and adaptability play a vital role, emphasizing the increasing importance of outsourcing, leasing, and innovative financing,” said Doug Brown, President of Black Book Research.
In connection to this, 79% of small hospital Chief Financial Officers are looking to opt for leasing or financial arrangements to upgrade their tech systems in the next three years. This will enable these small hospitals to appropriate their financial reserves efficiently.
The survey also found that 69% of rural hospitals that have networked with larger regional institutions to forge financial connections are still bearing losses in 2024.
Additionally, 84% of administrations expressed frustration from such wasted partnerships as they have not resulted in pacts to ensure their companies’ financial stability.
