Many large for-profit hospital systems have reported noteworthy growth in revenue even though they experienced declines in admissions. These performances are attributed to outpatient care increases which counters a lackluster inpatient volume.
Health Management Associates reported a 5.7% same-facility revenue increase, but an admissions drop of 4.2%. Life-Point Hospitals reported a 4.2% same-facility revenue increase, but a decline in admissions of 3.9%.
Aside from outpatient care being a more cost-effective delivery means, it also is attracting more patients who have commercial health plans due to the tightening of reimbursement on Medicare and Medicaid.
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