The ACA is expected to reduce the bad debt expense of hospitals by approximately $5.7 billion in 2014.
Of the healthcare providers that paid penalties, HCA Holdings (HCA) paid the highest amount in penalties, amounting to about $1.7 billion.
HCA Holdings earns about 50% of revenues from facilities in Florida and Texas, which have high levels of uninsured populations at 22.1% and 20.1%, respectively.
HITECH specifies certain criteria that must be satisfied to qualify as a “meaningful use” of electronic health record technology.
HCA Holdings is capturing market share in the $15 billion urgent care clinic market field by focusing on acquiring or opening standalone urgent care clinics.
With staff trained in emergency medicine and leading-edge technology, the company has been able to reduce its patients’ waiting time.
HCA focused on increasing its footprint in high-margin specialty services such as cardiology, neurology, behavioral health, and oncology.
With managed care forming a substantial portion of total revenues, entering contracts with favorable payment rates becomes an essential HCA business strategy.
CMS worked to reduce cases of inaccurate payments, resulting from upcoding or misreporting the severity of the ailments to obtain higher reimbursements.
As private hospitals treat higher numbers of indigent patients, public hospitals have available funds that were previously devoted to these patients.
HCA Holdings’ growth is mainly attributed to the improved quality of services and the company’s market leader position.
HCA Holdings’ diversified suite of services enables it to retain patients at their facilities, which bolsters revenues per patient.
Passive investments account for more than 56% of HCA Holdings’ total ownership structure.
HCA Holdings went private in 1988 through a leveraged buyout, but it again became a public company in 1992.
Operates as a clinical stage biotechnology company which engages in the development of novel cancer immunotherapeutic products
Provides healthcare services
Develops and discovers biopharmaceutical products
Provides healthcare information technology solutions
Provides life, hospital and medical insurance plans
The resulting best EV/best EBITDA declined only slightly, indicating that analyst estimates about future company earnings remain strong. Despite this performance, the company’s share price began to drop on November 7, 2014.