For-profits will hurt if the healthcare law is struck down in any fashion. If the Supreme Court rules the entire law is unconstitutional or if only the individual mandate is unconstitutional, the result would be a credit negative for for-profit hospitals, as well as drug companies and medical device companies. For-profit hospitals, in particular, would face increased exposure to bad debt as more people would lose or remain without insurance.
If the PPACA is upheld, for-profit hospitals would benefit as their bad debt charges would drop, according to the report.
More Articles on Moody’s Hospital Reports:
Moody’s: Health Insurers Face Negative Credit Risk if PPACA Stands
Moody’s: The 5 Most Prominent Areas of Focus in High-Performing Hospitals
