Dive Brief:
- After several years of consistent quarterly declines, a Jefferies survey found that hospitals' inpatient volumes trended positive in second-quarter 2014. Survey respondents reported a weighted average inpatient admission increase of 0.4% for Q2.
- More than seven of 10 survey respondents expect flat to increased inpatient volume trends in the third quarter. "Given the hospital sector's 5-year track record of negative volume trends, we view this optimism among hospital executives as a notable positive that likely foreshadows continued improvements in volume trends," the firm said. Indeed, executives at hospitals with 250-plus beds all indicated their expectations for improved volume trends next quarter.
- Emergency room volume for some hospitals also picked up: 37% of respondents cited increased ER use, while 47% said ER volumes were flat. The firm noted that 42% of ERs in Medicaid expansion states reported more volume, versus 29% in non-expansion states.
Dive Insight:
Jefferies, a global investment banking firm, said it has conducted hospital volume surveys for the past few years now and has not seen positive inpatient volume trends over that period. The firm attributed this to the impact of the weak economy and to plan design changes that have "consistently
dragged down broader healthcare utilization trends."
For that reason, Jefferies described it as "very encouraging" to see survey respondents report even a slight inpatient admission increase for second-quarter 2014. The firm said it believes that the improving economy, along with implementation of the Affordable Care Act and "pent-up demand resulting from patients waiting as long as possible to get procedures done are driving improved hospital volumes that should carry forward at least for the next few quarters."