Colorado Health Market Review 2013

  • ID: 2643924
  • May 2013
  • Region: United States
  • Allan Baumgarten
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Profitability is strong for Colorado hospitals and health plans; Hospital capacity grows, but utilization is flat

(Denver) Both hospitals and health plans reported very strong profits in 2012 and 2011. HMOs added 40,000 new members in 2012, mostly in Medicare and Child Health plans. Provider integration and consolidation continued, as systems prepare for the implementation of national health reform.

In this new report, Baumgarten finds:

Denver area hospital systems enjoyed very strong profits in 2011

Denver area hospitals have enjoyed strong and growing profits for the past 10 years. Based on an analysis of Medicare cost reports, hospitals in the Denver area had pre-tax net income of $774.6 million in 2011, or 12.3% of net patient revenue of $6.273 billion. HealthOne/HCA is the largest and most profitable system in the region, with between 30% and 32% of the hospital market. HealthOne/HCA had net income before taxes of $428.5 million, which is 20.9% of net patient revenue. All but $17.2 million of that was from operations, and the system's Sky Ridge and Swedish hospitals were especially profitable. Other hospital systems were less profitable from their operations READ MORE >

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