The pandemic has created a multitude of challenges for hospitals, but an increased shift toward lower-cost outpatient or in-home care is threatening organizations’ revenue growth and margins, according to new research by Moody’s Investors Service, reports Health Leaders.
Traditionally, inpatient care revenue has been the measure of presence and market share in the industry for hospitals and healthcare systems.
Between a rise in telehealth and fewer emergency room visits, the report finds that traditional hospital-based care is becoming less of the norm, as outpatient revenue has exceeded inpatient revenue in the past few years.
Though this trend has been prevalent for years, COVID-19 has caused an acceleration, with Moody’s identifying changes in reimbursement models, risk-sharing, investment in outpatient services, and advances in drugs and medical devices as contributing factors. Read more.
