Many states are restructuring their Medicaid programs, crafting legislation to cover the uninsured and studying the financial viability of hospitals, and this burst of activity is not likely to diminish, said Moodys Investors Service in a special comment.
Still other states are examining the level of charity care provided by hospitals to justify their tax-exempt status. Individual states role in not-for-profit healthcare going into 2007 promises to be more active than ever, and their initiatives are likely to be key factors in the performance of not-for-profit hospitals, playing a greater-than-ever role in shaping the near-term financial results of the not-for-profit sector within their jurisdictions, Moodys said.
The special comment accordingly outlines important credit issues facing not-for-profit hospitals in nine high profile states: California, Florida, Illinois, Michigan, New Jersey, New York, Ohio, Pennsylvania and Texas. The states were selected based on the number of credits and debt outstanding, important legislative changes that might affect financial performance, and other environmental factors such as economic conditions. -- by Cinda Becker