U.S. hospital admissions weakest in a decade: Citi analyst

Wed Dec 18, 2013 1:12am IST

Related Topics

Stocks

   

(Reuters) - U.S. hospital admissions in November were the weakest in more than a decade, under pressure from a change in reimbursement rules for Medicare patients and confusion tied to the problem-ridden rollout of Obamacare, according to a survey by Citi Research.

New billing rules for the Medicare program for the elderly and disabled require hospitals to treat patient stays lasting less than "two midnights" as an outpatient visit.

"In addition, it is reasonable to conclude that the cumulative impact of changing physician employment and payment models is beginning to play a role, as well as the paralyzing effect of the impotent Obamacare rollout," Citi analyst Gary Taylor said in a report.

Hospital inpatient admissions in November fell to their weakest level in more than a decade, based on responses to the bank's monthly survey of 98 hospitals, Taylor said.

In October and November combined, admissions were down 4 to 5 percent from a year ago, which will likely weigh on hospital operators' fourth-quarter earnings and 2014 forecasts, he said.

Shares of hospital operators, which have climbed throughout the year on an expected increase in demand for healthcare when the health reform law kicks in, slumped on Tuesday afternoon. HCA Holdings Inc fell 2.9 percent to $45.81, Community Health Systems Inc declined 2.9 percent to $38.11, and Tenet Healthcare Corp was down 1.9 percent at $39.80.

(Reporting by Susan Kelly in Chicago; Editing by Leslie Adler)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

HEALTH SHOWCASE

Breast Cancer Fight

Breast Cancer Fight

Roche, Merck extend immunotherapy fight to breast cancer  Full Article 

Office Perks

Office Perks

Apple, Facebook will pay for female employees to freeze their eggs.  Full Article 

It's In The Genes

It's In The Genes

Genetic link to Danish happiness, says study.  Video 

Smoking Effects

Smoking Effects

Americans have 14 million smoking-related ailments: study.  Full Article 

Health Food

Health Food

Olive oil, nuts may help reverse heart risk factors.  Full Article 

Digital Doctors

Digital Doctors

China sees tech cure for healthcare woes.  Full Article 

Stem Cell Study

Stem Cell Study

Stem cells from human embryos prove safe, improve vision - study.  Full Article 

Shortages Impact

Shortages Impact

Shortages hinder Venezuela's battle against fever outbreaks  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage