July 2018
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National Revenue Observations
As more payers move to per case reimbursement, hospitals must focus attention and closely monitor Net Patient Service Revenue (NPSR) per case, versus the more traditional per adjusted patient day metric. However, NPSR per adjusted patient day does remain a valid metric, and provides insight into how an organization may be managing patient throughput and length of stay. This month volume-adjusted NPSR saw no change from last year at this time. Yet it is 7% under budget for the month, indicating the predicted improvements in NPSR did not materialize as planned. Leaders will need to closely analyze changes in payer and service mix that are key drivers to these metrics and to overall organizational operating margins. The ability to better forecast and budget for revenue swings is imperative. Changes in the IP/OP factor are fairly clustered in June, with all regions and hospital sizes continuing to see favorable performance against budget. Outpatient volumes and revenues traditionally translate to a positive financial return for health systems, but acute hospitals also typically face tremendous competition from other providers, including physicians and for-profit organizations. Hospitals can be vulnerable to significant drops in outpatient revenue and profitability when new market service options open. Growth in this factor indicates a continuing trend of increasing outpatient volumes.
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National Observations
By Region
By Bed Size
National Observations
National Hospital Flash Report
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