According to the ratings agency, the Supreme Court’s decision “was validation for the non-profit hospitals and health systems that have been implementing ongoing strategies and initiatives to successfully operate in a lower reimbursement environment.” Fitch expects ongoing pressure on public, commercial and managed care payor reimbursements.
Fitch also believes that the prospect of reduced reimbursement rates has driven change within the industry, which would have still continued had the PPACA not been upheld. However, the outcome of the November election creates uncertainty for the future of the legislation.
Despite this uncertainty, Fitch said it believe providers best positioned for the future are ones that focus on efficiency, resource allocation, physician alignment and electronic medical records.
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