General hospitals in the area had greater losses than specialty hospitals despite the fact that their net revenues were eight times those of their specialty counterparts. Specialty hospitals had a $54.7 million operating profit in 2011, whereas general hospitals had a $28.8 million loss, according to data from the Nevada Department of Health and Human Services cited in the report. No specialty hospitals reported operating losses.
Local specialty hospitals had only $6.1 million in bad debt compared with general hospitals’ $1.6 billion. In addition, for every dollar billed, specialty hospitals collected 53 cents compared with general hospitals’ 17 cents, according to the report.
The different financial outcomes can be attributed to several factors. For one, specialty hospitals have a narrower focus, which allows them to exclude expensive services that general hospitals offer. For example, Horizon Specialty Hospital in Las Vegas does not have an emergency center, trauma center or MRIs, which substantially reduces its overhead, according to the report. Specialty hospitals can also screen patients by their insurance, whereas general hospitals are required to treat patients with emergency needs regardless of their ability to pay.
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