Fitch: Medicare Cuts Would Take Largest Toll on Lower-Rated Hospitals

According to a new report by Fitch Ratings, non-profit hospitals with the lowest credit ratings will suffer more than more highly rated hospitals if Medicare reimbursements are cut, explains a Bloomberg report.

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The lower rated hospitals are more susceptible to financial struggles in the face of reimbursement cuts. Fitch examined the 290 hospitals it rates and found that for each percentage point cut to Medicare reimbursements, net patient revenue would drop by 0.39 percent on average and operating profitability by 14 percent.

Related Articles on Hospital Ratings:

Fitch, S&P Credit Ratings to Be Made Available for Free on Website
Five Hospitals Receive Credit Downgrades in Last Month
Making the Grade: Choosing the Right Rating Agency

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