Healthcare Dive looked at the future of for-profit hospitals in light of a Fitch Ratings analysis of the sector.
The news service wrote:
“After reviewing the finances of Community Health Systems, HCA Healthcare, LifePoint Health, Tenet Healthcare and Universal Health Services, Fitch Ratings said federal and state government policy decisions — which are often politicized — create an unpredictable environment. Federal regulations and political decisions are the biggest risks to the industry’s operating profile, with 30%-40% of hospital revenues coming from Medicare and Medicaid, according to the report.”
“This is a concern for providers now, as HHS has proposed scaling back or eliminating some mandatory bundled payment models. The agency has pushed for deregulation, which can have a variety of effects but is forcing some hospitals to alter their course for transitioning to value-based payment models. The bundled payment decision and other proposals have angered some providers but also relieved others. With Tom Price out as HHS secretary, however, regulatory changes may slow down.”
“Fitch said hospital revenues are also affected by consumer finances through high-deductible health plans (HDHP) and health savings accounts. Insurers and employers have been able to slow premium increases by using HDHPs, but these plans have also saddled members with more out-of-pocket costs.”
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