2016 Acute Care Market Report

2016 Acute Care Market Report

With healthcare consolidation continuing, 34% of the 5,300 hospitals in the U.S., are part of the largest health systems (those with 10 or more hospitals). Still, the acute market is relatively fragmented compared to many other industries, and much more consolidation is expected in the coming years.
Nearly 60% of hospitals are not-for-profit. Community hospitals make up the largest segment by far, with 4,926 facilities and 787,000 beds. Almost all facilities are seeing a decline ininpatient admissions while outpatient visits increase.
Financially, hospital financial performance has been improving. The average aggregate margin was 8% in 2013. However, some 30% of hospitals still have a negative operating margin and 25% have a negative total margin.
Hospital executives continue to focus on supply savings in response to rising overall expenses; 97% belong to a group purchasing organization (GPO).

Key Topics
Acute care executives are trying many strategies for responding to reimbursement and market pressures. Some have entered the insurance business, with the number of enrollees in provider-owned insurance plans growing at about 6% annually. Hospitals are also increasing their focus on outcomes improvement. Readmissions rates are declining, as are healthcare-acquired conditions (HACs).
Innovations in the acute care segment include a growing number of free-standing emergency rooms, micro hospitals, and enhanced recovery programs.

Healthcare Policy
The Centers for Medicare and Medicaid Services (CMS) continues to roll out programs aimed at improving qualities and reducing costs for hospital care. Most recently, CMS introduced a new mandatory bundled-payment initiative for joint replacements. Penalties for excessive HAC and readmission rates are increasing.

GHX Sales Data
Total sales of medical products through distribution, as reported by GHX Market Intelligence, increased 3.94% from 2014 to 2015. Acute care represented 60.17% of total healthcare sales through distribution, down just slightly from 60.93% in 2014.
Parenteral products comprised the largest category in terms of sales dollars.

Hospital Consolidation Continues
Bigger, Not Necessarily Better
Hospitals Are Increasingly System-Affiliated
Community Hospitals Experience Outpatient Growth, Admissions Decline
CMS Reporting Highlights Private Insurance
Acute Care Aggregate Total Margin Increases
Growth In Hospital Expenses Continues
Most Hospitals Provide Case Management Services
HCAHCPS: Improving Patient Satisfaction
GPOs Face Provider Demands
Healthcare Spending Accelerates
Outpatient Utilization, Costs Increase
Provider-Owned Insurance Growing
Free-Standing Emergency Departments Make Gains
Medicaid And Uninsured ER Visits Decrease
Hospitals Employ More Than 5 Million
U.S. Average Case Mix Index Reflects Lower PPD
Uninsured, Medicaid Readmissions Increase Slightly
Enhanced Recovery Programs Improve Outcomes
Micro Hospitals Are Acute Care Alternative
Medicare Payment Trends Influence Hospital Behavior
MSSP, Pioneer, Next Generation ACOs To Measure Quality Achievements
Future Of Bundled Payments Impacts Many
Healthcare Acquired Conditions Reduction Is Key
Penalties Increase In Readmissions Reduction Plan
Healthcare Acquired Conditions Reduction Is A Key Initiative
Acute Care Sales Increase While Percent Of Total Sales Remains Steady
GHX Lists Top Acute Care Products Sold Through Distribution
GHX Reports Sales For Surgery Centers And Other Treatment Centers
GHX Lists Top Treatment Center Products Sold Through Distribution

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