Hospital Financial Outlook for Non-Profit Providers Mired With Risks

by Phil C. Solomon on September 7, 2012

in Non-Profit Hospitals

Moody’s mid-year outlook for not-for-profit Hospitals highlights developing risks

Moody’s announced that not-for-profit hospitals will have to fight “Strong Headwinds” for the rest of 2012.”

By limiting the expansion of insurance coverage, the ruling blunts the impact of one of the law’s few credit positive features. Uncertainty regarding which states will and will not participate in the Medicaid expansion adds to the political gridlock regarding healthcare reform, making it increasingly difficult for hospitals to perform adequate long-term planning.

“The established risks facing the industry primarily result from lower reimbursement levels that will come to fruition, with or without federal healthcare reform, and are driven by the unsustainable federal deficit and the rising share of federal spending for Medicare and Medicaid,” said Moody’s AVP-Analyst Daniel Steingart, author of the report, which also highlights several developing risks that contribute to the negative outlook, last updated in January.

What are the primary risks to the not-for-profit healthcare sector?  Read the article posted on the Healthcare Economist website.

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