American Rescue Plan a credit positive for nonprofit hospitals, Fitch says

The American Rescue Plan will subtly improve revenue and reduce cost pressures for nonprofit U.S. hospitals, according to a March 24 Fitch Ratings report

Advertisement

Although the plan only provides direct aid to rural healthcare providers, the measures that will help reduce the number of uninsured Americans are credit positive, Fitch said. 

In particular, the relief package will cover 100 percent of the costs of COBRA premiums for workers who are laid off through Sept. 30 of this year, provide incentives to expand Medicaid coverage and expand ACA premium subsidies.

The relief package also allocates $50 billion to the disaster relief fund, which may be used to help hospitals buy personal protective gear and other supplies. 

More articles on healthcare finance:
11 hospitals, health system seeking RCM talent
New York hospital reviews billing practices after patients mistakenly charged for ED COVID-19 testing
Hospitals see another month of slim margins

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.

Advertisement

Next Up in Financial Management

Advertisement

Comments are closed.