Flu cases called benefit to hospital finances (Dallas Morning News)

January 4, 2011

Flu cases called benefit to hospitals' finances

12:00 AM CST on Tuesday, January 4, 2011

By JASON ROBERSON / The Dallas Morning News

The widespread fever, body aches and nausea typical of this season may be

unpleasant to endure, but local hospitals could benefit.

In a report to investors Monday, one Wall Street analyst said more cases of flu

could be a potential windfall for hospitals.

Flu cases have increased steadily the last three weeks and are at their highest

level this season, according to the U.S. Centers for Disease Control and

Prevention.

For the week that ended Dec. 25, there were 82 flu-related hospitalizations

nationally, compared with 105 the previous week, according to the CDC.

" Based on the recent trend, we believe first-quarter flu activity will likely be

higher year over year, which should help increase admissions trends relative to

what was reported in 2010, " said Gurda, hospital analyst with Leerink

Swann Healthcare Equity Research.

The report is a reminder that multiple factors play roles in a hospital's

finances, other than reimbursements from health insurers.

" Higher flu activity is likely to increase medical costs in the first quarter, "

Gurda said. " However, unless the flu activity increases dramatically, we expect

a limited impact on company earnings. "

Increased flu cases are nowhere close to being game changers, but hospital

executives still take notice.

Baylor Health Care System confirms that general hospital admissions and

emergency room foot traffic is busier during flu season. The Dallas-based

company did not say how much extra money, if any, it receives as a result of

that increased traffic.

Dallas-based Tenet Healthcare Corp. also monitors flu season.

" It affects your admissions volume, " said Rick Black, Tenet spokesman.

During Tenet's third-quarter conference call in November, CEO Trevor Fetter

cited lower flu admissions as a reason for flat year-over-year patient volume.

Other publicly traded hospital systems had similar results.

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