Last week, we noted that few of the health systems in New York for a yearly investor conference had calculated the financial loss or gain from health reform. But there was a consensus that upcoming changes under the law would squeeze margins and increase pressure for hospitals and doctors to work more closely together. Read more here. Health systems will also continue to invest heavily in information technology. But the laws' potential to curb demand for hospital care (with more wellness, prevention and ambulatory care; less waste; and fewer errors) has also put a chill on capital spending. As Todd LaPorte, CFO of Scottsdale (Ariz.) Healthcare explained: “We've all been very careful about raising new money.”
This week in Modern Healthcare, you can also read about the tax on revenue Georgia hospitals embraced rather than see Medicaid reimbursement cut by roughly 10%, as my colleague Joe Carlson reported. Vince Galloro and Jessica Zigmond report on Universal Health Services' $3.1 billion deal (including $1.1 billion in debt) to acquire Psychiatric Solutions to become the largest behavioral health provider.