LifePoint Hospitals Inc
What Are Analysts’ Recommendations for LifePoint and Its Peers?
LifePoint released earnings for 4Q15 and 2015 on February 12, 2016. Following the earnings release, analysts revised their recommendations on the company.
Outflows in High-Yield Funds Fell, Yield on High-Yield Bonds Rose
Investor flows in high-yield bond funds were negative last week. According to Lipper, the net outflows from high-yield bond funds totaled $0.5 billion.
Universal Health Services’ Behavioral Health Business in 3Q15
Universal Health Services (UHS) is expected to benefit from its leading market position in the behavioral health business in 3Q15.
Which Hospital Stocks Are Expected to Benefit Most?
Trumpcare’s failure is considered to be a boon by hospital companies treating a significant portion of Medicaid members.
DaVita HealthCare Partners is New Stake in Lone Pine’s Portfolio
DaVita posted 4Q14 net earnings of $208 million, or $0.96 per share, compared with $212.3 million, or $0.99 per share, last year.
What Is the Reason for LifePoint’s High Salary and Wage Expenses?
During 4Q15, salaries and benefits for LifePoint Health (LPNT) amounted to $652.7 million, up 6.6% in comparison with the same quarter of the previous year.
Inovalon Gains 2.1%, to Present at NASDAQ Investor Program
Inovalon closed at $18.26 and was trading below 20-, 50-, and 100-day moving averages.
Universal Health Services’ Net Profit Margin Expected to Rise
Wall Street analysts expect that Universal Health Services (UHS) will report higher net profit margins in 3Q15 compared to margins in 3Q14.
How Does UHS’s Valuation Compare to Other Hospital Companies?
On February 26, 2016, Universal Health Services (UHS) was trading at a forward PE (price-to-earnings) multiple of about 13.8x.
Admissions Expected to Drive HCA Holdings Revenues In 1Q15
Same-facility inpatient admissions rose by 5.1% in 1Q15 on a year-over-year basis. Same-facility equivalent admissions, a measure of total inpatient and outpatient admissions, grew by 6.8%.
Assessing Community Health Systems’ focus on non-urban areas
According to the US Census Bureau, 19.3% of the total US population resides in non-urban areas. Also, out of the total hospitals in the US, 40% are located in these areas.
What the Advisory Board’s Health Business Expects from Technology Sales
In 1Q17, the Advisory Board earned a major part of its healthcare business revenues from consultancy services, but it expects to see higher demand for health tech.
Why Community Health Systems faces unique risks
Community Health Systems (CYH) faces a unique combination of company risks in addition to the industry-specific risks of the hospital industry.
What Are Analysts’ Recommendations for HCA Holdings?
HCA Holdings released its 4Q15 and fiscal 2015 earnings results on January 28, 2016. In Bloomberg’s survey, 68.0% of the analysts rated HCA Holdings a “buy.”
Peer analysis: Community Health Systems’ workforce and supply chain
In 2013, Community Health Systems (CYH) had a workforce comprising 69,000 full-time employees and 18,000 part-time employees. The company also increased its total number of affiliated physicians by 1,030 in 2013.
Solid Volume Growth Drove HCA Holdings’s Revenue in 4Q15
In 4Q15, HCA Holdings’s core strategy of selecting key geographic markets continued to be a major factor. It contributed to the company’s strong volume growth.
Analyzing hospital expenses: Breaking down the important costs
You can break down average hospital costs into salary expenses, supply expenses, bad debt expenses, and miscellaneous expenses. Labor costs account for about 49% of expenses, and they’re the biggest expenses for hospitals.
Who pays hospital bills? Analyzing hospitals’ payer mix
Government programs Government programs like Medicare and Medicaid, combined with other health insurance plans such as the Children’s Health Insurance Program (or CHIP), Department of Defense, and Department of Veterans Affairs programs, comprise about 51% of the total payments for hospital care. There are also other third-party payers, like worksite healthcare, the Indian Health Service, […]
Overview: Assessing hospital companies’ capital expenditures
Capital projects in the hospital sector include purchasing new facilities, purchasing medical equipment, renovating and replacing existing hospitals, and investing in information systems infrastructure.
Why location and services affect hospitals’ competition and margins
During the 1990s, the hospital industry underwent about 900 consolidation deals. These led to the formation of local markets, with limited hospital systems dominating cities like Boston, Pittsburgh, and Philadelphia.
Understanding hospitals’ size, technology, and operating expenses
In the capital-intensive hospital industry, economies of scale offer a competitive advantage by spreading out the high fixed costs, providing for higher margins.
Why healthcare investors should consider teaching hospitals
An overview of teaching hospitals can help you predict future trends in hospital industry workforce management and, finally, the companies’ overall expenses.
Understanding hospitals’ bad debt expenses and profitability
According to the American Hospital Association (the AHA), uncompensated care costs in 2013 amounted to about $49 billion. Bad debt expenses closely relate to unemployment levels and the total number of uninsured people.
What Analysts Are Recommending for These Three Hospital Stocks
After a relatively lackluster performance in 2017, the three major for-profit hospital stocks in the US have seen a rapid rise in 2018.
What’s behind LifePoint Health Stock’s Rise Today?
LifePoint Health (LPNT) stock rose ~34.1% to $64.25 earlier today.
Key Risks Facing Mednax in 2017
Mednax (MD) bills payors for services provided to patients. These payors consist of government programs like Medicare and Medicaid, contracted managed care, third parties, and private pay patients.
Understanding Mednax’s Financial Position
In 3Q17, hurricanes negatively affected Mednax’s (MD) revenues by close to $2 million. According to the company, acquisitions in radiology, anesthesia, and neonatology contributed around 430 basis points to revenue growth.
A Closer Look at Mednax’s Business Strategy
Mednax (MD) has a proven track record of expertise in the administration of physician services and a methodical approach to clinical data warehousing in fields such as research, education, and quality.
The Latest Wall Street Recommendations for Mednax
Of the total 14 analysts covering Mednax (MD) in December 2017, three analysts have given the stock a “buy” or higher rating and ten have given it a “hold” rating while one analyst has given it a “sell” rating.
Hospital Industry Reacts to the Failed Healthcare Bill
On March 24, 2017, House Speaker Paul Ryan pulled back the American Health Care Act, also known as “Trumpcare,” before votes were cast.
What Is Donald Trump’s Seven-Point Health Plan?
Trump’s healthcare agenda During his campaign, Trump came up with a seven-point plan for the healthcare industry. In this plan, he proposed to repeal the Affordable Care Act. Although a complete repeal doesn’t seem feasible, if applied, it would definitely take a toll on hospitals and insurance companies. In the next article, we’ll discuss the severity of […]
Emergency Visit or Expansion: What Should Investors Look For?
On a same-facility basis, emergency visits at LifePoint fell by 1.8% year-over-year, leading to a fall in same-hospital equivalent admissions during 4Q15.
How Has LifePoint Performed on a Same-Facility Basis?
Same-facility admissions for LifePoint (LPNT) fell by 4.2% to 55,000 during 4Q15. During 4Q15, its equivalent admissions fell by 1.1% to 146,000.
What Key Factors Drive Revenue for LifePoint?
What drives LifePoint’s revenue? Major revenue drivers for LifePoint Health (LPNT) include: Equivalent admissions Medicare case mix index Average length of stay Inpatient and outpatient surgeries Emergency room visits Outpatient factor To learn more about the company’s organic growth strategy, please refer to Organic growth strategy at LifePoint Hospitals. Admissions on a consolidated basis LifePoint’s consolidated […]
HCA Holdings’s Strong Capital Expenditure Strategy for 2016
In 2015, HCA Holdings deployed ~$2.4 billion in capital expenditure. It planned to increase capital spending to $2.7 billion in 2016.
HCA Holdings Had Solid Inpatient and Outpatient Revenue Growth
In 4Q15, HCA Holdings earned ~$6.1 billion in revenue from inpatient admissions. It also earned about $4.1 billion in revenue from outpatient admissions.
HCA Holdings’s Operating Expense Ratio Fell in 4Q15
In 4Q15, HCA Holdings spent about $8.1 billion on salaries, supplies, and other operating expenses combined—an increase of 5.3% from $7.7 billion spent in 4Q14.
HCA Holdings Had Less Bad Debt Expenses in 4Q15
In 2015, HCA Holdings’s bad debt expense—represented by the provision for doubtful accounts—totaled $3.9 billion. It rose by ~23.5% YoY (year-over-year).
Universal Health Services Explores Growth Opportunities in 3Q15
In 3Q15, Universal Health Services was actively involved in exploring growth opportunities, both in its acute care as well as behavioral health business.
Rise in Revenues Is Expected for Universal Health Services
According to Wall Street, Universal Health Services’ 3Q15 revenues are estimated to be about $2.2 billion—growth of about 9.5% on a YoY basis.
Glenview Capital Management: Portfolio changes for 4Q14
The 4Q14 portfolio for Glenview Capital Management increased 4.5% to $19.98 billion, from $19.13 billion in the third quarter of 2014.
LifePoint Hospitals: An ambitious acquisition strategy
LifePoint Hospitals’ ambitious acquisition strategy is to buy hospitals in states that are adopting or are thought to be adopting Medicaid expansion.
Organic growth strategy at LifePoint Hospitals
LifePoint Hospitals (LPNT) has adopted a four-pronged organic growth strategy to boost its revenues, a key element of which is physician recruitment.
LifePoint Hospitals’ geographic strategy
LifePoint Hospitals’ geographic strategy is to provide medical and surgical services in mainly non-urban markets.
Hedge funds among top owners of LifePoint Hospitals
The major hedge funds project that the Affordable Care Act will benefit LifePoint Hospitals and increase the company’s revenues.
An overview of LifePoint Hospitals
With 67 hospitals, acquisitions continue to strengthen its position in rural markets, especially where LifePoint Hospitals is the sole healthcare provider.
Universal Health Services’ payer mix differs from other companies’
Universal Health Services (UHS) has displayed a trend in payer mix from 2011 to 2013 that differs from other companies in the healthcare industry (XLV).
Exploring Universal Health Services’ revenue streams
Universal Health Services’ (UHS) net revenues increased by 4.6% from $6.96 billion in 2012 to $7.28 billion in 2013.
Universal Health Service’s population growth–driven strategy
Universal Health Services’ (UHS) strategy focuses on markets with above-average population growth in the US.
Unraveling the history of Universal Health Services
Universal Health Services (UHS) has consistently provided good returns. Its performance surpassed that of the Health Care Select Sector SPDR ETF (XLV).
How will the Cadillac tax affect the hospital industry?
The implementation of this tax, called the Cadillac tax, will take effect beginning 2018. Post-2018, the threshold will be indexed to general inflation
HCA Holdings sees operating expenses dip in 3Q14
Salaries account for more than half of total operating expenses. HCA Holdings spent marginally less on salaries in 3Q14.
Why Medicaid expansion leads to better hospital performance
According to the ACA, Medicaid expansion programs involve states changing the eligibility limits of Medicaid coverage to include population up to 138% of the federal poverty line.
Why changes in interest rates affect the hospital industry
Economic changes in interest rates affect hospital companies, depending on the company’s cost-structure and expansion strategies.
Why the unemployment rate affects hospital performance
The healthcare industry, represented by the Healthcare Select Sector SPDR, is affected by the unemployment rate. Income affects people’s health choices.
Exploring HCA’s debt numbers
Despite having negative equity, HCA Holdings is backed by strong operational performance and debt-to-EBITDA figures, which are among the lowest in the industry.
HCA’s information technology initiatives
HITECH specifies certain criteria that must be satisfied to qualify as a “meaningful use” of electronic health record technology.
Standalone urgent care strategies
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.
Exploring HCA Holdings’ operating expenses
With solutions such as flexible staffing and optimal group purchasing provided by Parallon, HCA Holdings has better operating margins as compared to its peers.
HCA Holdings’ revenue streams
HCA Holdings’ growth is mainly attributed to the improved quality of services and the company’s market leader position.
HCA’s diversification strategy
HCA Holdings’ diversified suite of services enables it to retain patients at their facilities, which bolsters revenues per patient.
Exploring HCA’s ownership structure
Passive investments account for more than 56% of HCA Holdings’ total ownership structure.
An overview of HCA Holdings
HCA Holdings went private in 1988 through a leveraged buyout, but it again became a public company in 1992.
Community Health Systems: Market share growth strategies
The company acquires hospitals to create regional networks, especially in states where more of the population is uninsured. By positioning itself to be the network provider in under-penetrated markets, the company can earn higher revenues.
The benefits of Community Health Systems’ acquisition strategy
Community Health Systems acquires two to four hospitals each year as a part of its growth strategy. Reducing duplicate functions at the corporate level reduces overhead salary costs.
Healthcare reform’s impact on Community Health Systems
The Patient Protection and Affordable Care Act (or ACA) and Health Care and Education Affordability Reconciliation Act are together called “Reform Legislation.”
Background: Why Community Health Systems delivers decent returns
Community Health Systems (CYH) has grown its hospital count rapidly in the last three decades. Today, it has the largest hospital network in the US.