Admissions Slow in August for Most Hospitals

A report on August admissions at for-profit hospitals provides more bad news for the sector. The report from Banc of America Securities analyst Gary Taylor earlier this week gave the sector a generally negative outlook.

"We'd be very surprised if the hospital group is trending toward a materially improved third quarter," Taylor told the Associated Press.

Taylor said that August year-over-year admissions growth at for-profit hospitals continued to slow, with just 43 percent of respondents to the firm’s monthly hospital admissions survey reporting an increase in admissions.

The August report was compiled from 81 hospitals in 33 states. Survey respondents are either hospital chief executive officers or chief financial officers.

Although all respondents reported a sequential decline in year-over-year uninsured admissions, uninsured/self pay admissions grew 51 percent in August. Taylor added that uninsured admissions growth has outpaced insured admissions growth in nine of the last 10 months since Banc of America Securities began tracking the two in October 2006.

According to Taylor’s report, the South and Midwest reported the highest year-to-year uninsured admissions growth. Health Management Associates and HCA Corp. have the highest exposure in the South, where more than 80 percent of their beds are located. Community Health Systems, Inc., which completed its purchase of Triad Hospitals in July, has nearly 30 percent of its beds located in the Midwest.

Taylor also tracks LifePoint Hospitals Inc., Tenet Healthcare Corp. and Universal Health Services Inc.