News Headlines Article

For-profits expected to withstand Medicare cut
Modern Healthcare

Investor-owned hospital chains are expected to weather the impact of a 2% Medicare payment cut and other reimbursement pressures, according to credit rating agencies, which maintained a stable outlook on the sector.

In two reports released today, both Moody’s and Standard & Poor’s highlighted an operating environment filled with payment constraints and challenges to revenue growth. But the for-profit systems are expected to find new ways to reduce costs and gain revenue streams, including through acquisitions.