Page 30 - 2013 Hospitals/Systems Digest US.NMH.13.02.007

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HOSPI TALS IN MULT IHOSPI TAL SYSTEMS
HOSPITALS/SYSTEMS DIGEST 2013 SANOFI / MANAGED CARE DIGEST SERIES® / WHERE INFORMATION BECOMES INTELLIGENCE.™
Key Takeaway
Technological advancements over the past decade, coupled with pressures to control costs,
have led hospitals to consistently focus on shifting their services to the outpatient sector. With the
growing prevalence of ambulatory surgery centers providing widespread access for patients,
hospital systems have emphasized outpatient services in order to remain competitive.
• Total revenue dropped 5.4% for facilities in MHSs
owning HMOs between 2010 ($509.4 million)
and 2011 ($481.9 million). As in years past, an
increasing proportion of that revenue (43.4%, up
from 42.5%) came from the outpatient setting.
• Hospitals in MHSs not owning HMOs posted
a 4.1% growth in total revenue in 2011, to
$467.7 million from $449.2 million. Even as the
inpatient share of total revenue fell, actual
inpatient revenue rose 2.9%, to $270.2 million.
Total Revenue Declines at Hospitals in MHSs Owning HMOs
• Between 2003 and 2007, the outpatient portion
of total revenue at hospitals in MHSs owning
HMOs edged up 2.2 percentage points;
in the subsequent four years, that growth
accelerated, increasing 6.9 percentage points.
• By comparison, the outpatient percentage of
total revenue at facilities in MHSs not owning
HMOs grew at a more subdued rate, rising
3.7 percentage points between 2003 and 2007
and 5.0 percentage points from 2007 to 2011.
Outpatient Revenue Share Climbs at Facilities in MHSs Owning HMOs
Data source: IMS Health © 2013
F INANCIALS
32%
35%
38%
41%
44%
Percentage of Total Revenue
34.3%
34.7%
36.3%
36.5%
39.6%
41.0%
42.5%
43.4%
33.5%
34.9%
35.7%
36.5%
36.2%
37.2%
38.1%
40.2%
41.5%
42.2%
2003 2004 2005 2006 2007 2008 2009 2010 2011
Hospitals in MHSs Owning HMOs Hospitals in MHSs Not Owning HMOs
OUTPATIENT REVENUE AS A PERCENTAGE OF TOTAL REVENUE, 2003–2011
HOSPITAL UTILIZATION FINANCIAL STATISTICS
Average # of
Discharges
per Year
Total Revenue
(Millions)
Inpatient
Revenue
(Millions)
Inpatient
Revenue as
% of Total
Revenue
Outpatient
Revenue
(Millions)
Outpatient
Revenue as
% of Total
Revenue
HOSPITAL TYPE 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011
Hospitals in MHSs
Owning HMOs 11,173 11,168 $509.4 $481.9 $292.7 $272.5 57.5% 56.6% $216.6 $209.4 42.5% 43.4%
Hospitals in MHSs
Not Owning HMOs 10,034 10,205 449.2 467.7 262.7 270.2 58.5 57.8 186.5 197.5 41.5 42.2
ALL HOSPITALS 7,436 7,429 $333.6 $336.6 $188.7 $189.9 56.6% 56.4% $144.8 $146.7 43.4% 43.6%
LONG-TERM TREND