Hospitals in Pennsylvania

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Hospitals in Pennsylvania face increasing economic challenges from the popularity of ambulatory surgery centers. These centers offer same-day surgeries to patients needing procedures that do not require a hospital stay. The Pennsylvania Hospital and Health System Association has calculated the number of ambulatory surgery centers at over 266 centers, which dwarf the approximately 162 hospitals located throughout the state. These centers often operate with profit margins that are five times higher than hospital margins.

The problem affecting hospitals in Pennsylvania revolves around the siphoning off of the most lucrative patient population to these surgery centers. While the simplest procedures with the most profitable payment mechanisms are handled by surgery centers, hospitals in Pennsylvania are left with more complex medical situations and a higher percentage of patients who are covered by government programs that cap profit margins. This growing trend has steadily impacted the profitability of many hospitals in the state.

Pennsylvania's economy relies heavily on hospitals. Hospitals in Pennsylvania are a significant source of jobs and generate billions in economic activity. As hospital margins are squeezed by the popularity of ambulatory surgery centers, the entire state economy may experience a backlash. Read more about hospitals in Pennsylvania from the links on this Business.com page.

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