Modern Healthcare reporter Vince Galloro, based in Chicago, covers investor-owned hospital chains. Will the for-profits stay in the black in the coming year?
According to one bearish analyst, 2009 just might be the beginning of the end of profits for investor-owned hospital chains. The sinking economy is a big factor, but longer term, the analyst sees two big negatives that others see as positives—universal coverage and the aging population.
The analyst sees health reform leading to a government-run insurance pool that will undercut private health plans. Those plans will then be forced to lower premiums, and then lower provider reimbursement. Meanwhile, huge growth in Medicare beneficiaries means that the rate for any given unit of service will have to decline.
To learn more, please view the accompanying video or read Modern Healthcare’s Jan. 5 business outlook Special Report either in print or online.