DUBLIN--(BUSINESS WIRE)--The "Michigan Health Market Review 2017: Part Two" report has been added to ResearchAndMarkets.com's offering.
This is the 21st annual edition of the publisher's Michigan health market analysis, first published in 1997.
Key Findings in the New Report:
For the second year, Detroit area hospitals added more than $100 million to their operating income in 2016. Based on an analysis of Medicare cost report data for 2016 operations, Detroit hospitals, now consolidated into six health systems, had net income of $655.5 million in 2016, which was 5.5% of net patient revenues of almost $12 billion. That is up more than 20% from 2015 net income of $535.5 million. They improved their operating income from $133.7 million in 2015 to $238.6 million in 2016. The Beaumont Health system, now with 32% of the market, improved its net income for the third straight year, from $301.6 million in 2015 to $360.5 million in 2016. The three McLaren Health hospitals in the area increased their net income from $19.2 million to $83.3 million.
Consolidation of hospitals in other parts of the state helped to increase their net income by 32.3% in 2016. Based on data for 64 hospitals outside the Detroit area, they increased their combined net income by 32.3% in 2016, from $845.5 million to $1.104 billion. While they lost money on operations, they increased their other revenues from investments, philanthropy and government grants by $211 million. The systems with the best margins were: Spectrum (9.1%), Munson (9.0%), Trinity Health (6.8%) and University of Michigan (6.5%).
Continuing a trend beginning in 2007, inpatient hospital days fell 2.6% for Detroit area hospitals. Inpatient days peaked at about 2.5 million in 2007 and declined almost every year since. The number of inpatient days covered by Medicaid increased in 2014 and 2015, as more than 680,000 residents now have Medicaid coverage through the Healthy Michigan program.
Ten out of 16 Michigan provider organizations earned shared savings in the Medicare Accountable Care Organization program. Combined they earned $62 million, almost twice as much as the year before. Three Michigan provider systems - Michigan Pioneer ACO, Henry Ford Physicians Network and Trinity Health- have contracted with Medicare as Next Generation Accountable Care Organizations.
Enrollment in HMOs increased by about 54,000 or 1.6% in the first three quarters of 2017. Medicare Advantage plans added 28,000 seniors, while individual plans added 28,000 new enrollees and Medicaid plans grew by 23,500.
HMO profits grew sharply in the first three quarters of 2017. HMOs reported total unaudited net income of $312.9 million, up from $253.3 million for the same period in 2016. Blue Care Network had net income of $155.1 million for the first nine months of 2017, up from $93.7 million a year earlier. Its parent, Blue Cross Blue Shield Mutual improved its nine-month net income from a loss of $62 million to net income of $357.2 million.
Key Topics Covered:
1. Introduction
2. Market Structure
3. Market Analysis
4. Health Plan Trends
5. A Look Ahead
For more information about this report visit https://www.researchandmarkets.com/research/pjkfml/michigan_health?w=4
