A survey of hospital administrators predicts a slight easing of the hospital capital budget pressures that have been squeezing the industry, as well as stable volumes for some important medical procedures.

In a newsletter to investors sent Monday morning, the health care investment bank Leerink Swann said the April installment of its quarterly survey of hospital administrators forecasts around a 9 percent growth in capital budgets, contradicting earlier surveys suggesting almost no growth in 2010.

The survey, commissioned by MEDACorp, also indicated that unlike 2009, when a discretionary procedure slump was expected, orthopedic, cardiology and general surgical procedure volumes should hold steady.
With only 52 respondents, Leerink Swann analyst Rick Wise cautions that the survey "seems too small to draw sweeping conclusions." And he notes that capital spending and discretionary procedures won't fully bounce back without an increase in employment.

Nonetheless, he thinks the overall tone was "directionally positive."

"Combined with companies' first quarter reports [and] commentary, the survey seems to confirm that hospital budget pressures may be easing slightly," he wrote.

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