Moody’s Says Not-for-Profit, Stand-Alone Hospitals Will Struggle Under Reform

Moody’s Investors Service said not-for-profit hospitals and stand-alone community hospitals in particular “will struggle financially” under health reform, according to a report by the Healthcare Financial Management Association.

Advertisement

While most hospitals “should be able to navigate the implications of healthcare reform relatively unscathed,” reduced payment and increased efficiency demands will hit solo, not-for-profit hospitals hard, Moody’s stated.

“Governmental auditing and oversight of revenue will be tightened [and] hospitals will be pressured to operate more efficiently, forcing spending cuts and mergers among smaller hospitals after 2014,” the report said.

Read HFMA’s report on not-for-profit hospitals.

Advertisement

Next Up in Legal & Regulatory Issues

  • Scottsdale, Ariz.-based HonorHealth wrapped its acquisition of 11 Evernorth Care Group locations Jan. 2. Evernorth is a subsidiary of The…

  • Four hospital mergers and affiliations took effect Jan. 1, marking a busy start to 2026 for healthcare consolidation. Here are…

Advertisement

Comments are closed.