Thought Leadership

New Perspectives To Improve the Credentialing Industry

Why Physician Billing Holds the Key to Preventing Hospital Closures

As seen in Health Data Management: Written by Scott Friesen, CEO of Newport Credentialing Solutions

According to the American Hospital Association, hospitals are closing at a rate of about 30 a year. A recent Bloomberg article predicts the pace of closures to accelerate over the next 18 months.

In August, Knoxville, Tenn.-based Curae Health and its three hospitals in Mississippi filed for Chapter 11 bankruptcy. In July Rockdale, Texas-based Little River Healthcare, its parent company and several of its affiliated entities entered Chapter 11 bankruptcy. In May, Arizona-based Gilbert and Florence Hospitals at Anthem entered Chapter 11 bankruptcy. The list goes on.

Bloomberg goes on to quote Morgan Stanley analysts who looked at data from roughly 6,000 U.S. private and public hospitals and concluded eight percent are at risk of closing; another 10 percent are considered “weak.” The firm defined weak hospitals based on criteria for margins for earnings before interest and other items, occupancy and revenue. The “at risk” group was defined by capital expenditures and efficiency, among others.

 
 

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Health Data Management is the original producer of this publication.
 
 

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