Healthcare DIVE October 16, 2024
Higher payments in four states could increase the hospital operators’ profitability in the near term, according to analysts.
Dive Brief:
- The CMS is expected to soon approve several enhancements to state-directed payment programs for Medicaid services, which could result in positive earnings before interest, taxes, depreciation and amortization revisions for HCA Healthcare and Universal Health Services, according to analyst notes from TD Cowen.
- SDP enhancements are likely to be approved this year in Tennessee, Texas and the District of Columbia, and increases could come in Florida and California before the end of 2025, according to the analysts.
- Higher Medicaid reimbursements could drive up HCA’s EBIDTA consensus estimate by nearly 10% over the next year, while UHS’ consensus...