HCA: Decline in Heart Surgeries Led to Low 2Q Postings

Hospital Corporation of America's Medicare revenue growth in the second quarter of fiscal year 2011 fell short of expectations and a shift in volume from surgical to medical procedures, especially in the cardiovascular service line, was a leading factor in the low postings, according to an HCA announcement.

Overall demand for cardiovascular services has been declining by about 3 percent per year for the past several years, but HCA said this heightened trend is what impacted its markets. Overall, the decline in the Medicare case mix index resulted in a $28 million adverse impact. Other drivers of HCA's CMI decline included a decline within medical cases and a new CMS grouper effective Oct. 2010.  

However, HCA confirmed 2011 guidance of 3 to 5 percent growth in its adjusted earnings before interest, taxes, depreciation and amortization, assuming it substantially meets HITECH reimbursement parameters.

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