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.

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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.

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