Unpaid Bills Will Detract From Hospitals’ Earnings In 2007
- Wednesday, January 10, 2007, 17:30
- Primary Care
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Analysts predict that unpaid medical bills will continue to “cut deeply” into hospital profits in 2007, the Tennessean reports. Robert Hawkins, an analyst with Stifel Nicolaus, said unpaid bills will continue to be problematic for hospitals because “the uninsured and underinsured population is growing faster than hospitals can boost admissions or raise prices to insurers.” The debt is an “across-the-board phenomenon,” William Bonello, an analyst with Wachovia Securities, said, adding, “I don’t see something happening in the near term … to make things better.” According to the Tennessean, bad debt has affected stock prices of publicly traded hospital companies. “Can hospitals outrun bad debt? The short answer is … no,” Hawkins said in a research note (Pack, Tennessean, 1/4).
“Reprinted with permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation . © 2005 Advisory Board Company and Kaiser Family Foundation. All rights reserved.
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