Naperville, Ill.-based Edward-Elmhurst Health is feeling the squeeze of climbing bad debt thanks to high-deductible health plans, soaring pharmaceutical costs and Medicare and Medicaid reimbursements that don't fully cover the price tag of patient care.
Weak admissions and a deteriorating payer mix will mark the rest of 2017 after they conspired to ruin the second-quarter earnings season for hospital stocks.
Patients avoiding elective surgeries and other procedures because of skyrocketing out-of-pocket costs were cited by hospital chains as a primary cause of softening hospital volumes in the second quarter.
Tenet Healthcare, the nation's third-largest investor-owned hospital chain, wants to offload facilities that don't fit its long-term strategy so it can focus on its primary markets where it is first or second in market share.
Following divestiture of three hospitals, IU Health's operating income tumbled 46% in the second quarter as revenue fell but expenses rose.
Insurers are grappling with how to manage their government and individual lines of business, with mixed results.
Tenet, the nation's third-largest investor-owned hospital chain, saw its adjusted admissions decline 1.4% compared with the year before.
The Bloomfield, Conn.-based insurer grew revenue and premiums in the second quarter of 2017, while its profit benefited from its terminated merger agreement with Anthem.
Although a bump from the same period last year, the second-quarter earnings are short of the record $1 billion earned in the first quarter.
Steady growth and low enrollee turnover are giving Kaiser an edge in keeping medical costs far below industry averages.
As part of the all-cash, $185 million deal, Allscripts will bring in McKesson's Sunrise EHR, which is directed at small hospitals.
National insurer Aetna's revenue was down in the second quarter of 2017 because of membership losses and lower premiums from its ACA business, but profit jumped thanks to lower costs related to its failed proposed merger with Humana.