Hospital Volumes Laid Low By High-Deductible Health Plans

The rise of high-deductible health plans is starting to cut into hospital admissions and threaten record hospital margins boosted by the Affordable Care Act.

Patients avoiding elective surgeries and other procedures because of skyrocketing out-of-pocket costs were cited by hospital chains as a primary cause of softening hospital volumes in the second quarter.

Giants HCA, Community Health Systems, Tenet Healthcare and LifePoint Health felt the sting of flat to lower admissions in the second quarter, causing earnings declines. They also all cut earnings guidance for the year.

The few not-for-profit hospital systems that disclosed their results this week fared little better. Fourteen-hospital Indiana University Health posted a 46% drop in operating income in the quarter on a year-over-year admissions decline of 3%.

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