Hospital operating revenues to outpace inflation through 2005

Healthcare Financial Management, March, 2004

Growth in net operating revenues is expected to peak at 5.3 percent in 2003, then decline to 5 percent in 2004 and 4.5 percent in 2005, according to projections from R-C Healthcare Management Services. Although projections for 2003 through 2005 show revenue prices exceeding cost inflation, Arnold Silver, president of R-C Healthcare Management Services, cautions that these forecasts are likely to fluctuate.

Meanwhile, fourth-quarter hospital inflation is expected to increase by 3.9 percent in 2003 and 2004, and 4 percent in 2005. (The forecast is higher than earlier estimates reported in the October 31, 2003 HFMA Express News, due to a revised factor for the cost of capital.) "As the economy heats up, healthcare demand and technology continue to grow, and the baby boomers reach into their late 50s and early 60s, we see a tremendous push toward higher inflation," Silver comments.

For more hospital inflation projections, go to www.omedix.com/rcmgmt/inflation1.php. Free registration is required.