Cardiology accounted for half the revenue drop HCA saw last quarter as Medicare patients sought less-intensive medical care, company executives said in a conference call with analysts Monday after the stock markets closed.
HCA outlines causes of revenue drop
HCA's Medicare revenue declined $74 million during the second quarter, executives said. Of that amount, the drop in patient acuity accounted for $28 million and weaker demand for high-intensity services could continue in coming months, according to documents HCA released during the call (PDF). HCA said in July the drop in patient acuity contributed to lower profits during the second quarter.
The majority of the case-mix decline occurred within 20 hospitals and was prompted by physician losses, competition, increased outpatient care and weak demand, according to the company.
Regulatory changes contributed to another $21 million in Medicare revenue reduction during the second quarter, declines from CT scans accounted for another $7 million, and cost reports and claims from the previous year were responsible for the remaining $18 million, the company said.
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