Exploring the new trend of scaled-down acute care hospitals

Medicare reimbursement changes have encouraged smaller clinics and practices.

There have been a number of major changes in the healthcare industry in recent years, and these have combined to create a new industry landscape. Now, according to Healthcare Finance News, the days of the large, sprawling hospital campus may be coming to an end. 

Many Americans have come to associate hospitals with "massive, monolithic structures" according to the source, but it seems the need for these large facilities is declining. With new Medicare policies leading to shorter inpatient stays, and the rise of specialists seeking facilities apart from large hospital campuses, a new hospital model could be arriving soon. 

"It would be safe to say that the vast majority of existing hospitals are overbuilt and do not staff the number of patient beds the hospitals were originally designed for, especially if the hospital was built pre-2000. Because of the shifting away from inpatient to outpatient and the shortening of inpatient stays, most hospitals are trying to adjust their real estate to this new reality." explained Tim Delgado, president of Houston-based Read King Medical Development to Healthcare Finance News. 

Due to shrinking reimbursements and practices losing money on Medicare and Medicaid patients, many organizations have been forced to rethink their strategy. The rise of smaller, more conveniently located outpatient and emergency clinics has also drawn patients away from larger hospitals, compounding the cash flow problem.

While the existing large hospitals will certainly continue to provide patient care, they may experience greater competition from new, smaller facilities and clinics. If this results in any issues concerning healthcare revenue cycle management for your care facility, it could be beneficial to outsource accounts receivable to a third party to increase cash flow.