Fitch: Value-Based Payments Are Non-Profit Hospitals' Greatest Challenge

The transition to value-based reimbursement from the volume-based model presents non-profit hospitals' greatest challenge, according to a report from Fitch Ratings.

Hospitals are gradually engaging in more risk-based contracts with payors, growing in financial uncertainty as they share more and more risk, according to the report. The credit rating service said it would consider management's ability to handle that risk in its evaluations.

Complicating things further for non-profit hospitals are the major investments in capital projects and alignment initiatives with other providers and physicians while simultaneously lowering costs to adapt to lower reimbursement rates.

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