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Moody’s: Sequestration Threatens Not-For-Profit Hospitals
Health Leaders Media

The 2% Medicare reimbursement cuts mandated by the federal sequestration over the next 10 years pose a big threat to not-for-profit hospitals, says a report from Moody’s Investors Service. In its report, “The Sequester Series: Sequestration’s Medicare Reductions Present New Headwinds for Not-for-Profit Hospitals,” Moody’s finds that not-for-profit hospitals are generally vulnerable to the cuts because they rely heavily on Medicare reimbursements. Hospitals are especially at risk if they have not already budgeted for the cuts or made spending adjustments in preparation for reduced Medicare payments.