The shrinking rate of healthcare spending growth has driven management to operate leaner, more efficient hospitals and health systems for several years, which is expected to improve their future performance, according to the report.
On the other hand, the Moody’s report noted the tightening of federal dollars will force a decline in revenue growth as well, which is likely to hit non-profit hospitals with a large share of Medicare and Medicaid patients especially hard. For that reason, Moody’s maintains its negative outlook for non-profit hospitals and health systems as announced earlier this year.
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