Fitch Ratings: Positive admissions growth for U.S. hospitals in 2015 unlikely to be repeated

Inpatient admissions increased slightly at some of the largest for-profit hospitals in 2015, according to a report from Fitch Ratings, but the agency cautions that such growth isn’t expected in 2016.

"A repeat performance of positive growth is unlikely in 2016, since the improving economy and Affordable Care Act provided a lift that can't overtake longer-term headwinds to growth, like pressure by payors to reduce short-stays and readmissions," said Megan Neuburger, Fitch’s managing director in a statement.

Fitch’s report says a group of the largest for-profit hospitals saw an average of 0.75 percent organic growth in inpatient admissions last year, the first positive admissions growth since 2008.

For the first quarter of 2016, Fitch is expecting similar numbers to the fourth quarter of 2015, when for-profit hospitals reported negative 1 percent growth in admissions, along with 1.2 percent growth in adjusted admissions.

As to whether the long-term trend on admissions will change, Fitch’s report said “it has proved difficult to call a bottom.”

“One possible explanation for this trend is that process and productivity enhancements and technological innovation are working to keep more patients out of the hospital, which is good news for patients and payors,” according to the agency’s report.