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ADVISORY BOARD CO. Washington, D.C.; Inexpensive Products, Services Pay Off Here.(THE NEW AMERICA)
Byline: KIRK SHINKLE
As cash-starved hospitals in the U.S. move to cut costs and spending, the fallout will likely impact any number of businesses, from makers of high-tech surgical systems to suppliers of bedpans and rubber gloves.
But how about companies that provide data and services to help hospital executives run a better business?
One such firm is Advisory Board Co., a medical management consultant. It collects data from member hospitals, then analyzes the data and sells them back to the hospitals as a way to improve efficiency and establish best practices.
The firm has signed up some 2,100 members and reaches about 50,000 hospital and health care execs.
Picking up new hospital customers in the near term could be more difficult than in previous years. The reason: Spending by hospitals has slowed.
Advisory Board might have an advantage, however, because it charges a lot less for its services than some peers do.
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