For-profit health systems based in the Nashville area have managed to ride a sluggish economy and lower numbers of paying patients by delivering more cost-effective, efficient care in 2010, but reimbursement and regulation changes in 2011 will pose heightened challenges, according to a report by the Tennessean.
Awaited fourth-quarter results from companies such as Tenet Healthcare and Health Management Associates are expected to mirror the first three quarters of 2010. Weak, but not disastrous, volumes will be offset by strong cost control and improvements in efficiency.
Among the 2011 challenges, the systems will have to step up efforts for more efficiency to make up for the expected loss of enhanced federal funding for state Medicaid programs in mid-year.
Read the Tennessean report on for-profit hospitals.
Read more coverage of for-profit systems’ financial results:
– HMA Reports Beating Expectations for 2010, Expects Acquisitions in 2011
– Health Management Reports 13.3% Net Revenue Increase in Q3
– Tenet Announces 3Q Results, Net Profit of $932M
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