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Hospitals jumping into insurance business risk rough landing
Modern Healthcare

Health systems that own an insurance plan—an increasingly popular gambit—have good reasons to be in that business, such as diversification and gaining market share. Indeed, some of those plans have done well for many years. But new entrants have cause to be wary.Operating performance “will be more volatile” as health systems buy or launch health insurance plans, analysts at Standard & Poor’s conclude in a report. The rating agency said extraordinarily poor performance by health plans could drag down health system credit ratings, although that hasn’t happened yet.

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