Same-facility admissions for LifePoint (LPNT) fell by 4.2% to 55,000 during 4Q15. Flu-related admissions resulted in a fall in volume and led to a 1.7% fall in same-hospital admissions.
During 4Q15, equivalent admissions fell by 1.1% to 146,000. During 2015, same-hospital equivalent admissions were up 1.3%. The growth was driven by a 3.1% rise in emergency room visits and a 0.5% rise in total surgeries.
Same-facility or same-hospital admissions are measures used to compare current hospitals with those present in the previous period. It thus excludes the performances of recent acquisitions as well as hospitals that have been disposed of.
Revenue and admissions on a same-facility basis
Same-facility revenues before the provision for doubtful accounts during 4Q15 amounted to $1.5 billion, up by 3.3% on a yearly basis. Higher contract rates from health maintenance organizations (or HMOs), preferred provider organizations (or PPOs), and private insurers, coupled with improved case mix, supported such growth. Net revenue per equivalent admission rose by 5.8% during 4Q15.
Expected equivalent same-facility admissions for 2016
After considering factors such as reimbursement rate following healthcare reforms, LifePoint expects same-hospital net revenues per equivalent admissions for 2016 to rise 1.5%–2.5%. In terms of volume, which is equivalent to admissions, the company expects a 1.5%–2.5% upside in same-facility equivalent admissions.
To avoid direct risk, investors can look for options such as ETFs that have diverse holdings across various sectors. One such option is the Vanguard Extended Market ETF (VXF), which holds ~0.09% in LifePoint.