The operating environment for hospital companies is improving with increasing non-Covid utilization, outpatient surgeries and patient days. Staffing challenges are expected to decrease this year. However, recession fears, inflation and resultant escalating costs are eating up Zacks Medical-Hospital industry players’ margins.
Growing competition in this market remains a common theme. Technological innovations and adoptions are expected to continue boosting hospital companies’ efficiency and generating cost savings. Leading industry players like HCA Healthcare, Universal Health Services, Acadia Healthcare and Tenet Healthcare are set to benefit from these developments.
Going ahead, non-COVID admissions are expected to continue rising as the intensity of COVID-related utilization of resources declines. Demand for elective procedures is expected to drive patient volumes. Growth in admissions, outpatient surgeries and Medicare reimbursements and deferred procedures can support hospital companies’ revenues. However, inflationary pressures and financial constraints can force patients to delay addressing some non-emergency medical needs. Read more.
