Around 30% of the total admissions are reimbursed by managed care programs. These contracts are negotiated for terms between one and three years, and the rates are increased by around 4% to 6% every year.
Managed care strategy
With managed care forming a substantial portion of total revenues, entering contracts with favorable payment rates becomes an essential HCA business strategy. HCA Holdings negotiated for 80% of its total managed care plans in 2015, 40% in 2016, and 20% in 2017.