FL Hospitals, HMOs Profitable: Report
Florida hospitals had strong profits last year, according to an analyst's report, and so did its HMOs, especially those that specialize in Medicare patients.
Allan Baumgarten, who produces an annual report on the Florida market, had upbeat news for health industries in the state in his report Florida Health Market Review 2013. Although the report itself requires payment, a summary of it is available on his website.
Its findings in general:
- Hospitals in the state continue to consolidate, reducing the number of independents.
- Profits are up despite a decline in patients, reflecting hospitals' negotiating power.
- Capital campaigns are adding inpatient capacity, even though inpatient days have dropped sharply and are expected to continue to do so.
- Investor-owned systems such as HCA and Tenet continue to dominate in some regions of the state and their market share is even increasing in some.
- Employer group HMOs are profitable, especially UnitedHealthcare and Aetna.
- Medicaid now accounts for 25 percent of HMO enrollment in the state.