Moody’s analysts said President Obama’s healthcare policies, primarily the Patient Protection and Affordable Care Act, had already been factored into the non-profit hospital industry’s outlook. Since the PPACA will move forward, the same credit risks remain for those organizations, according to the report.
The biggest long-term credit negatives for hospitals are embedded within the PPACA, such as $150 billion of reduced Medicare reimbursements to hospitals over 10 years and $14 billion of Medicaid disproportionate share hospital payment cuts. However, Moody’s analysts said the individual mandate will at least be a “discreet credit positive” for the non-profit hospital sector as millions of individuals will gain access to health insurance starting in 2014.
More Articles on Moody’s Reports:
Moody’s: Trinity, Catholic Health East “Mega-Merger” Positive for Non-Profit Sector
Moody’s: Mergers Drive Big Boost of Hospital Upgrades in 3Q
Moody’s: Higher Insured Numbers Bode Well for Non-Profit Hospitals
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