Value-based payment models, risk-sharing arrangements and consumerism — all on the rise under the PPACA — favor providers delivering high-quality, low-cost services in the most convenient settings. Subsequently, from fiscal years 2010 to 2013, Fitch’s rated hospital and health system portfolio showed a decline in inpatient activity, along with an increase in outpatient and ambulatory care.
This development necessitates a reassessment of how nonprofit hospital clinical performance should be measured, according to Fitch. However, inpatient, volume-based metrics are still “important indicators of market relevance and competitive position,” the report states. Furthermore, inpatient admissions, surgical volume, emergency department visits, average length of stay and case mix index will have a notable impact on profitability.
More articles on hospital finance:
Monroe Hospital files for bankruptcy
S&P: PPACA temporarily helps top line for some hospitals, insurers
IASIS Healthcare’s net revenue increases 8% in Q3
