Over the next 18 months, Moody’s expects same-facility EBITDA to grow between 2.5 percent and 3 percent. The debt rating agency said the increase will be driven by growth in outpatient services, as government and commercial payers continue efforts to shift patients to lower cost settings. However, this positive trend in outpatient services will be offset by higher patient costs and uninsured rates, which will constrain inpatient volume growth, according to Moody’s.
Patients with high deductible health plans are increasingly responsible for the cost of their care and are seeking care in lower cost settings. “This is resulting in a deferral of procedures and increased price sensitivity that is driving patients to have procedures performed outside of the hospital setting,” said Moody’s. The debt rating agency expects fewer people to have health insurance next year due to the federal government’s plan to cut funding to advertise the exchanges by approximately 90 percent.
More articles on healthcare finance:
CHI’s operating loss swells to $585.2M in FY 2017
Moody’s: Hurricane Irma will cause credit challenges for some Florida hospitals
Higher coding productivity linked to a 25.4% decrease in accuracy
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
