Lowered admission rates expected for hospitals

(Reuters) – Weak patient admissions that plagued U.S. hospital operators in the June quarter are likely to persist through 2018, as patients fret about soaring out-of-pocket costs and the future of Obamacare remains uncertain. Companies including HCA Healthcare Inc, the largest for-profit hospital operator, and Tenet Healthcare Corp have reported dismal quarterly results and cut their forecasts for the year. High-deductible health plans – which shift initial medical costs to patients, but have lower monthly premiums – are becoming popular, resulting in patients pushing back non-emergency surgeries. Tenet saw weakness in elective procedures including orthopedics, Eric Evans, the company’s president of hospital operations, said earlier this month. “That does play into the story of deductibles rising and changing behaviors.” Also, HCA, Tenet, and rivals such as Community Health Systems Inc enjoyed a surge in admissions in 2014 and 2015, thanks to the Affordable Care Act, popularly known as Obamacare. But with big insurers reducing exposure to the program since last year, results for hospital operators are suffering in comparison, analysts said. HCA is expected to grow at a compound annual rate (CAGR) of 4.8% through this year and the next, down from 6.7% growth over the last 3 years. Tenet’s CAGR is expected to plunge to 0.2% from 21%. In what could be a trend, December quarters going forward could perform better than the traditionally s...
Source: Mass Device - Category: Medical Devices Authors: Tags: Business/Financial News Hospital Care Source Type: news