In the News: Jan 3–10

Hospital OP Revenue Nears IP Revenue

A recent Modern Healthcare article discusses the 2019 hospital statistics report from the American Hospital Association (AHA), due out later this month. According to the report, hospital outpatient revenue is steadily growing to nearly that of inpatient revenue; OP revenue reached $472 billion in 2017, compared to $498 billion in IP revenue the same year.

Hospital admissions and IP days remained relatively unchanged in 2017, with IP surgeries and births showing a decline. However, according to the AHA, these plateaus and declines did not translate to OP volume. OP surgeries and ED visits remained mostly the same in 2017, with OP visits increasing by only 1.2%. Despite little growth in utilization, net OP revenue still increased 5.7%, which was partly driven by CMS’s 2-midnight rule and the shift of procedures to OP settings that resulted in lower charges and payments. Some health care leaders assert that OP revenue will eventually surpass IP revenue.

The increasing shift of health care services from IP to OP settings, as well as the accompanying shift in revenue, are part of the ongoing changes in the health care landscape. Yet competitive advantage is within reach for systems able to tap into the full breadth of their care delivery acumen. To learn how to creatively assemble the key pieces of primary care today, read the Sg2 report Low-Acuity Sites of the Future: Reconfiguring the Primary Care Puzzle.

Childhood Genetic Risks Found in Newborns

A recent CommonHealth Newsletter article discusses the latest results from the federally funded BabySeq Project, which is a study based in Boston that performs DNA analyses on newborns in the hope of proactively addressing childhood disease—often before symptoms present themselves. The BabySeq Project published a study in the American Journal of Human Genetics that found about 9% of the 159 newborn babies screened in the study showed a genetic predisposition for childhood-onset disease.

The study also showed that 3.5% of the babies whose parents consented to receive information regarding adult-onset disease risk demonstrated a disease risk that was unanticipated based on the child’s clinical or family history. Samples collected from the parents also contributed to the interpretation of the results in 8% of newborns screened.

Sg2 anticipates that newborn genetic sequencing has the potential to impact the neonatal intensive care unit patient population and reduce length of stay as a result of the earlier and more effective diagnosis and treatment of complex disorders. To learn more about innovations in neonatology and their projected impact on inpatient volume, watch the Sg2 Webinar: Neonatology Landscape 2018.

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