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Welcome to the "new normal"
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Most of us alive today know recessions to be brief interruptions in an ever-upward march of economic progress. This time around, the rebound may be much slower in coming.
As expressed by Microsoft's CEO, Steve Ballmer, as we entered the Great Recession, "We're certainly in the midst of a once-in-a-lifetime set of economic conditions. The perspective I would bring is not one of recession. Rather, the economy is resetting to a lower level of business and consumer spending based largely on the reduced leverage (debt) in the economy."
If Mr. Ballmer is correct, rather than an orthodox rebound in consumer spending, patients will be holding onto their discretionary dollars and no longer using their homes as ATMs. Household savings rates will continue to increase. This may somewhat impede the hoped-for shift of patients paying for more of their own care out-of-pocket. You and your staff will have to redouble efforts to compete with every other vendor in the marketplace.
Get more expert perspective from John Pinto live at Hawaiian Eye 2010, to be held January 17-22, 2010 at the Grand Hyatt Kauai. Learn more at OSNHawaiianEye.com.