The pandemic sped up the delivery of healthcare into lower-cost outpatient or in-home care settings, a movement that will continue to affect hospitals' revenue growth and margins, according to a March 15 report by credit rating agency Moody's.
Five things to know, according to the report:
1. The pandemic accelerated an increase in telehealth and a decrease in emergency room visits, leading providers to expand home care services.
2. Because of the CMS decision to remove some orthopedic and cardiac services from its inpatient-only list, there will be a move to more outpatient treatment or ASCs. There will also be a change in risk-taking models of reimbursement to keep patients out of more costly acute care hospitals.
3. Nonprofit hospitals will pursue more partnerships with telehealth, urgent care and ASC players.
4. Drug and medical device improvements will assist the shift to outpatient care. For example, new drugs and at-home heart monitors will decrease the risk of hospitalizations for heart failure, while new technology in orthopedics will reduce surgical time.
5. Hospitals with complex cases that require specialty care will perform better than hospitals offering less complex care.