News Headlines Article

Nonprofit Hospital Outlook ‘Negative’ in 2014
Health Leaders Media

Since 2008, Moody’s Investors Service has been issuing a “negative” credit outlook for not-for-profit hospitals, and the streak continues for 2014. Moody’s cites drops in revenues and inpatient volumes and says it expects that not-for-profit hospitals’ median revenue growth in fiscal year 2013 will fall to a range of 3% to 3.5% (significantly down from FY2012’s 5.2% growth rate) and will remain low in 2014.

The credit rating agency listed several factors that will reduce not-for-profit hospitals’ revenues, including: