Competition from ambulatory surgery centers is increasing the pressure on safety net hospitals and healthcare costs in Pennsylvania, according to the Hospital & Healthsystem Association of Pennsylvania.
Reacting to a financial report on nongeneral acute-care facilities by the state Health Care Cost Containment Council, the hospital association said there are 170 general acute-care hospitals and 261 ASCs. Compared with hospitals averaging a total profit margin of 4% in the past decade, ASCs have seen profit margins increase to 26%.
“With ASCs treating healthier—and usually better insured—patients, the financial strain and clinical demands on acute-care hospitals, which serve as the safety net for all Pennsylvanians are growing,” said association President and CEO Carolyn Scanlan.
The council in its report said margins between ASCs and hospitals can't be compared directly because of differences in how income taxes and net incomes are reported by the two groups.