Anthelio, the leading independent provider of comprehensive healthcare
information technology and services to hospitals and other healthcare
providers, today announced the results of the 3rd annual community
hospital survey completed with Community Hospital 100. The survey
provides insights into the financial health and new initiatives of
community hospitals across the country, and was released on October 21,
2013 at the 2013 Community Hospital 100 Executive Management Conference
in Greensboro, Georgia.
Operating Margins: 23 percent of responding community hospitals
had operating margins over 4 percent (a decrease from 29 percent last
year). 29 percent reported negative operating margins as compared to
23 percent last year. The community hospitals with operating margins
over 1 percent also fell to 60 percent from last year’s 64 percent.
Medicare and Medicaid cuts: Community hospitals reported
ongoing decreases in revenues as a result of the federal and/or state
cuts to Medicare and Medicaid. 8 percent of respondents reported a
decrease of over $10 million (up from 7 percent) and 54 percent had
cuts of less than $3 million (down from 60 percent).
Readmission penalties: Community hospitals continue to expect
decreases in revenues as a result of the CMS readmission penalties. 8
percent of respondents expect a revenue decrease of over $1 million,
17 percent expect a decrease of $100,000-$999,000, 54 percent expect a
decrease of less than $100,000 and 21 percent expect no decrease.
Affordable Care Act (ACA): 42 percent respondents think that
ACA is a bad/very bad idea while 21 percent think it is a good/very
The survey found that responding community hospitals are struggling
financially and facing significant challenges due to federal or state
cuts to Medicare and Medicaid:
Community hospitals surveyed identified following initiatives to improve
their operational efficiencies:
EMR implementations: Community hospitals have made considerable
progress towards EMR implementation. 40 percent of responding
hospitals have completed and are operating EMRs. Almost all other
responding community hospitals have acquired and partially implemented
ICD-10 transitions: 71 percent responding hospitals are in the
process of implementing transitions to ICD-10, while 27 percent are
planning to transition but have not yet started. While 39 percent of
respondents have spent or anticipate spending less than $100,000 on
their ICD-10 transition, 40 percent will spend $100,000-$499,000, 13
percent will spend $500,000-$999,000 and 9 percent will spend more
than $1 million.
ACOs participation: 17 percent of the responding community
hospitals stated that they will not participate in an ACO, up from 10
percent last year. The number of respondents that said they are
planning to join an ACO fell to 30 percent from 44 percent.
Independence/consolidation: Only 17 percent expressed a desire
to remaining independent as a long-term strategic plan compared to 59
percent last year. 74 percent of independent community hospital
respondents plan to pursue partnerships with other hospitals without
relinquishing ownership. Only 9 percent will consider consolidation
with a hospital system, which is down significantly from 41 percent
Quality initiatives: Reducing readmissions was quoted as a top
priority by 19 percent responding community hospitals. The other
leading quality improvement initiatives cited by respondents were
improving patient safety (10%), improving patient satisfaction
(including HCAHPS) (10%), improving performance on core measures (8%)
and reducing hospital acquire infections (6%).