Fitch: Patient Admissions, Pricing Trends Mixed at For-Profit Hospitals

Fitch-rated for-profit hospitals experienced varying operating trends over the past year, as urban hospitals saw stronger volume growth but weaker pricing trends than hospitals in rural and suburban settings, according to a report from Fitch Ratings.

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In the fourth quarter of 2011, same-hospital adjusted admissions increased 1.6 percent at for-profit hospitals in urban markets compared with the fourth quarter in 2010. In that same period, rural for-profits witnessed a 0.8 percent decline in same-hospital adjusted admissions due to weak activity in obstetrics and less acute service lines.

Throughout 2012, Fitch expects for-profit hospitals to receive larger payments from the Medicare and Medicaid Electronic Health Records Incentive Program. The ratings agency also predicts for-profit operators will remain active in the merger and acquisition market, as the acquired revenue has been a major contributor to adjusted admissions growth.

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