Friday, March 13, 2009

The Credit Crisis and Medical Banking

By Mark Brousseau

How has the global credit crisis impacted the healthcare automation space?

“All companies are re-evaluating how much they can invest and where they can invest,” Paula Fryland, senior vice president and managing director, Corporate Banking, PNC Bank, said today at the Seventh National Medical Banking Summit in Nashville, TN. “At PNC Bank, we have made a conscious decision to identify a couple of investments in the space of innovation that we think are critical to the bank, and healthcare is one of those. We have a commitment to invest tens of millions of dollars in the healthcare space. There is no sense that there is any retreat from that investment.”

“There are no numbers coming out to suggest you should stop investing in healthcare,” she added.

Fyland told the crowd of 48 attendees that healthcare is a tremendous opportunity for financial institutions. “The potential was significant to begin with, it is growing, and healthcare is ripe with opportunity because it is very inefficient. If your bank has been ignoring healthcare, shame on you,” she said.

“There isn’t a company or institution that hasn’t been effected by the economic crisis over the past six months,” said Al Briand, division head, BNY Mellon Treasury Services, product management and strategic development. “Some of the organic volumes that drive business growth are not there. So what we need to do as an institution is become more diligent about preparing for the future and identifying those areas where the investment will pay off. We can’t count on the increases in revenues like we did in the past. Healthcare is firmly in our growth area and we continue to invest.”

What do you think? Post your comments below.

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