Pa. outpatient surgical centers gaining profits and popularity, report says - Philadelphia Business Journal:

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Between June 2007 and May 2008, 17 new ambulatorgy surgical centers opened in bringing the statewide total to245 — 76 of whicgh are in the five-countyg Philadelphia region. The study also found the total margin recorded by the outpatient centersincreased 3.9 pointws to 24.7 percent in fiscal 2007 from 20.85 percenrt in fiscal 2006. "While this most recent growthu innew [ambulatory surgical centers] is not as brisjk as the prior 12-month period when 28 new facilities opened, it stilll reflects the ongoing outpatient surgery trend," said David R. Kreider, PHC4's chairman.
“[Ambulatoryg surgical centers], which outnumber the state’s acute-carr hospitals [245 to 170)] continus to perform remarkably well.” The Hospital Healthsystem Associationof Pennsylvania, a trade group based in said the report showss how the proliferation of ambulatory surgery centers continues to increase the pressure on acute-care hospitals at the same time that the nationalo economic downturn threatens to further weakenm hospitals. HAP President and CEO Carolyn F.
Scanlan notec acute-care hospitals have had total margins of 4 percentf or lower in 10 of the last13 “This report should draw the attention of legislators and regulatorzs as they examine the extent to which ambulatory surgery centers, which now far outnumber general acutde care hospitals, are driving the increase in health-cared costs,” Scanlan said. “With [ambulatory surgeryt centers] already removing profitable servicesw from community hospitals and treatinyghealthier — and usually insured patients, the current economicc crisis is exacerbating the financial strainj on our acute-care The PHC4 reports also looked at the performance of specialtgy hospitals in the state.
The agency foun d changes in the Medicare eligibilithy and reimbursement rules have resulted in fewer elderly patients covered by the federa health insurance program receiving careat long-term acute-care hospitals and fewer patients being treatedr at rehabilitation hospitals. Statewide average operatingf marginsat long-term-care hospitals dipped to 3.09 percenr in fiscal 2007 from 3.72 percent in fiscal 2006. Rehabilitation hospitals also saw their average operating margin fall over the past two yeardfrom 12.24 percent in fiscal 2005 to 9.06 percent in fiscal 2007. Psychiatrixc hospitals posted a small improvement in theier averageoperating margin, which rose 0.4 pointsd to 5.69 percent.