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Not-for-profit hospital sector outlook still negative: Fitch Ratings
Modern Healthcare

Dealmaking will “remain brisk” among health systems next year thanks to the continued financial pressure on hospitals from penalties and cuts under Medicare, “meager” private insurance rate increases and patients who are more willing to shop retail for healthcare, Fitch Ratings analysts said in a new report (PDF). But that squeeze on hospital revenue is also the reason for analysts’ continued negative outlook for the not-for-profit hospital sector, Fitch said. Consolidation and deals among hospitals are remaking markets across several states, with transactions announced this year that will create Georgia’s largest health system, Ohio’s biggest clinically integrated network and new regional giants in Illinois, Michigan and elsewhere.

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