Quality incentives could translate into improved credit ratings for not-for-profit hospitals, according to a new report from Moodys Investors Service.
Hospital efforts to improve quality often result in operational efficiencies, increased patient volume and market share, better rates from commercial insurers and improved finances, Moodys said in the report.
Like many strategies, we recognize that financial returns from a quality strategy may require large capital costs and may incur short-term operating losses, Moodys Senior Vice President Lisa Goldstein said in a written statement. However, over the long term, a hospitals focus on quality will be viewed as a credit positive if greater patient demand and financial improvements materialize.
Improving patient safety and evidence-based clinical outcomes are two areas where not-for-profit hospitals are focusing their quality efforts, Goldstein said. -- by Rebecca Vesely
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