health care. The various groups are most commonly referred to as hospitals, outpatient services, home health care services, nursing homes, and assisted living facilities. Eighty-five percent of the hospitals in the United States are nonprofit entities; the remaining 15 percent are for-profit. Nonprofit hospitals are generally community owned, whereas investors own for-profit hospitals. When patients receive home health care, special services are provided, such as respiratory therapy and the delivery of drugs to the patients home. The number of home care agencies increased from 13,296 to 15,037 during the period 1994 to 1995. The primary customer base of home health services is individuals aged 65 and older. Services such as 24-hour assistance, food preparation, and transportation, are provided through assisted living. Assisted living facilities are among the most rapidly growing segments of the health care industry, and consumer expenditures are forecasted to reach $18 to $20 billion by the year 2000. When residents require more care than what is provided through assisted living, they are usually moved to nursing homes. These homes provide resident patients with long-term specialized care. The annual cost per patient for those living in assisted living facilities was $20,000 compared to $32,000 for those in nursing homes.Hospitals revenues depend on inpatient occupancy levels, the extent to which ancillary services and therapy programs are provided to patients, the volume of outpatient procedures, and the charges or negotiated payment rates for such services. The healthcare industry experienced an increase in the percentage of patient revenues attributed to outpatient services. These services most commonly included rehabilitation, ambulatory surgery centers, physical therapy, and sports medicine, amongst others. Increased pressures from Medicare, Medicaid, health maintenance organizations, preferred provider organizations...
