The rating agency said business conditions for nonprofit healthcare organizations are favorable with growing patient volumes and low rates of uninsured. Medicaid expansion has been largely credit positive for hospitals in expansion states, as it has been a key factor in reducing the uninsured rate, according to Moody’s.
Moody’s expects operating cash flow growth in the sector to slightly moderate but remain positive over the next several quarters. The agency also expects expenses to rise due to growing drug costs and continued investments in staffing and population health strategies.
Moody’s originally changed the sector’s outlook from negative to stable in August 2015.
More articles on healthcare finance:
43 states earn ‘F’ grade for healthcare price transparency
This week’s 5 must-reads for hospital CFOs
7 hospital bankruptcies so far in 2016
Becker’s 3rd Annual Fall Chief Pharmacy Officer Summit is the top tier event that the people leading the future of pharmacy convene. This 3-day event is built specifically for Chief Pharmacy Officers and senior pharmacy leaders. The sessions examine the workforce, financial and clinical priorities shaping pharmacy today. Becker’s is where candid discussions flourish and new ideas thrive. Becker's 3rd Annual Fall Chief Pharmacy Officer Summit
