Here are four things to know.
1. Moody’s Investors Service’s outlook is stable across three subsectors: pharmaceuticals, U.S. for-profit hospitals and U.S. medical products and devices.
2. The ratings agency anticipates earnings will grow between 1 and 2 percent due to successful product launches in oncology and other complex diseases. Aging populations will continue to fuel growing demand for pharmaceuticals.
3. U.S. for-profit hospitals will witness EBITDA growth of between 2.5 and 3 percent in 2018. However, as patients increasingly move to lower-cost settings, inpatient volumes will be constrained and rising labor and other expenses will pressure margins.
4. For U.S. medical products and devicemakers, Moody’s Investors Service’s predicts EBITDA growth of 3 to 3.5 percent. Growth will reflect new products, large mergers and acquisitions, and an aging population.
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