38% of health care organizations surveyed will increase hiring
But half of health care organizations plan to reduce bonuses
CHICAGO, October 28, 2009 - In a survey of health care CFOs and senior comptrollers conducted by Grant Thornton LLP, the U.S. member firm of Grant Thornton International Ltd, 38 percent say their organization will increase hiring in the next six months - 14 points higher than the national number - and one of the highest industries surveyed. More than half (52%) plan to reduce bonuses and half (51%) believe the U.S. economy will improve in the next six months.
In terms of pricing pressure, health care CFOs are overwhelmingly concerned about the cost of employee benefits (83%), such as health care and pension costs. Not surprisingly, 41 percent report that their company is reducing health care benefits and 21 percent are reducing 401(k) matches.
| Over the next six months, do you expect the U.S. economy to: | ||
|
| Health Care | National |
| Improve | 51% | 49% |
| Remain the same | 44% | 41% |
| Get worse | 6% | 10% |
| Over the next six months, do you expect your company's financial prospects to: | ||
|
| Health Care | National |
| Improve | 45% | 45% |
| Remain the same | 47% | 43% |
| Get worse | 8% | 13% |
| Over the next six months, do you expect prices or fees charged by your company to: | ||
|
| Health Care | National |
| Increase | 31% | 22% |
| Remain the same | 59% | 67% |
| Decrease | 10% | 11% |
| Over the next six months, do you expect your headcount to: | ||
|
| Health Care | National |
| Increase | 38% | 24% |
| Remain the same | 38% | 54% |
| Decrease | 24% | 22% |
| When do you believe the U.S. economy will come out of the recession? | ||
|
| Health Care | National |
| By the end of 2009 | 7% | 15% |
| First half of 2010 | 39% | 27% |
| Second half of 2010 | 34% | 35% |
| 2011 | 13% | 17% |
| Later | 7% | 7% |
| About which type(s) of pricing pressure are you most concerned? (Check all that apply.) | ||
|
| Health Care | National |
| Employee benefits (e.g., health care, pensions) | 83% | 77% |
| Energy | 21% | 30% |
| Insurance | 29% | 31% |
| Raw materials (e.g., food, metals) | 19% | 30% |
| Other | 19% | 14% |
| Is your company reducing average costs per employee in any of these employee benefit and compensation areas? (Check as many that apply.) | ||||
| Health Care | National | |||
| Increasing | Reducing | Increasing | Reducing | |
| 401(k) match | 6% | 21% | 3% | 26% |
| Bonuses | 9% | 52% | 7% | 55% |
| Disability benefits | 6% | 5% | 3% | 10% |
| Health care benefits | 13% | 41% | 7% | 33% |
| Life insurance benefits | 3% | 3% | 2% | 11% |
| Salary raises | 13% | 39% | 9% | 42% |
| Stock options and other forms of equity-based compensation | 2% | 37% | 6% | 34% |
* Percentages may not total 100 due to rounding.
- ends -
About the Survey
Grant Thornton LLP conducted the biannual national survey from Sept. 21 through Oct. 2, 2009, with 846 CFOs and senior comptrollers from public and private companies, of which 72 were from health care.
About Grant Thornton LLP
The people in the independent firms of Grant Thornton International Ltd provide personalized attention and the highest quality service to public and private clients in more than 100 countries. Grant Thornton LLP is the U.S. member firm of Grant Thornton International Ltd, one of the six global audit, tax and advisory organizations. Grant Thornton International Ltd and its member firms are not a worldwide partnership, as each member firm is a separate and distinct legal entity.
In the U.S., visit Grant Thornton LLP at www.GrantThornton.com.