News in brief - Dec. 12, 2011

Humana to buy home care firm

A company that employs 1,500 "care managers" for seniors with chronic illnesses has become Humana's latest acquisition. The Louisville, Ky.-based health plan announced Nov. 29 that it will buy SeniorBridge, a clinical care company based in New York.

SeniorBridge provides in-home care for chronically ill patients. It employs social workers, nurses and health aides. Compared with national averages, the firm says, its beneficiaries have fewer unnecessary hospitalizations, falls and emergency department visits.

SeniorBridge currently serves private-pay customers, but Humana's announcement said it plans to "fully leverage SeniorBridge's capabilities across Humana's current health plan membership." Terms of the deal were not disclosed.

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Margins at N.J. hospitals improve

Hospitals have struggled during the economic downturn because of cuts to government programs and decreases in demand for elective procedures, but institutions in at least one state have improved their finances by keeping a tight rein on costs.

According to a Nov. 28 report by the New Jersey Hospital Assn., the statewide average operating margin for hospitals was 2.3% in 2010, up from 1.7% in 2009.

The boost came from laying off staff and leaving vacant positions unfilled. Large capital projects were put on hold.

Average expenses increased 1.3% in 2010 for hospitals in New Jersey. Other reports looking at hospitals nationally have found that expenses grew an average of 4% in 2010.

"Despite the slight improvement in operating margins, New Jersey hospitals still must contend with poor reimbursement, continued loss of revenue through federal funding cuts and tremendous uncertainty under health care reform and debt reduction," said Sean Hopkins, NJHA's senior vice president of health economics.

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