Dive Brief:
- Since the recession first hit in 2008, hospitals and health systems have seen a continual drop in inpatient volumes.
- Industry experts say they expect further declines for the rest of 2014 and even the next five years or so.
- Both Moody's Investors Service and Standard & Poor's are predicting an ongoing decline in hospital inpatient volumes due to factors that include a marked shift in care to outpatient rather than inpatient settings.
Dive Insight:
An expert from the Camden Group who spoke with Healthcare Finance News notes that there are at least seven reasons hospital inpatient admissions are falling, including a drop in elective admissions, pressure to avoid readmissions and affordable admissions, and a shift toward fees for value away from fees-for-service, which is causing hospitals to emphasize preventive care. The bottom line, however, is that a renewed health system emphasizing primary care in case management will inevitably cut hospital admissions. It's a shame, but it seems that hospitals may have to lose for patients to win.